Uber is taking heavy losses but investors seem to keep believingPublished 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 🚴♀️
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% 🤔
“The 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 📦
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?
No Feedback on this trade.
- Newspill Team 💊
08-May 09:03 (Eastern Time)
Every weekday, we send to our community a summary of the most impactful Business/Financial news of the day - the "Daily Dose".