Uber is taking heavy losses but investors seem to keep believing
Published by Terence Mahier | Source

Yesterday, Uber reported its Q1 results, including revenue of $3.54B and a net loss of $2.9B, its biggest loss in three quarters 😰

Rides booking fell "only" 5% in Q1 & was down around 80% in April, though the CEO shed some optimism after mentioning that ride volume kept increasing in the past 3 weeks. On the other hand, Uber Eats saw a 50% year-over-year increase as more people ordered food for delivery at home πŸš΄β€β™€οΈ

This week, Uber laid off about 14% of its corporate employees to cut costs. Uber also withdrew its February claim to be profitable by the end of the year 🀧

Sounds like bad news to you? Shares are up +6% πŸ€”

Extra Insights

β€œThe big opportunity we thought Eats was just got bigger,” the CEO said. And he hinted at new services to enable retailers to send packages to customers using Uber’s platform πŸ“¦

Much like its primary North American competitor Lyft, Uber has been struggling with the impacts of Covid-19 on drivers and riders alike, and now faces a labor lawsuit in the state of California.

Uber's strategy is straight forward. No matter how much they lose money, they want to become the number 1 ridesharing and food delivery platform in all the regions and countries it operates in. Will investors follow?

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- Newspill Team πŸ’Š
08-May 09:03 (Eastern Time)

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