Uber reveals 2.9bn first-quarter losses from coronavirus, but says business is already starting to pick up

Uber weighs to invest again in Lime scooters, which would reduce the startup's valuation by 80% and give Uber the possibility of buying it in two years

  • Uber said Thursday that it has lost $ 2.9 billion in the first quarter of the year, when the coronavirus has caused a huge crash in its car trips.
  • Quarterly losses have been higher than most investors expected, although earnings have exceeded their expectations.
  • The company’s shares have risen slightly in the market after-hours, since the executives have assured that they begin to see signs of recovery.
  • Discover more stories at Business Insider Spain.

The first quarter of the year for Uber has been strongly affected by the coronavirus, has communicated the company this Thursday, but signs of recovery are already beginning to be seen.

Here are the important figures:

  • Income: 3,540 million dollars compared to 3,020 million that were expected.
  • Adjusted net income: 2,900 million dollars compared to 1,153 million expected.
  • Adjusted losses per share: $ 1.70 vs. $ 0.75 forecast per share.

The company’s shares have risen up to 8% in the market after-hours, after Uber recognized that their travels, which have fallen as much as 80% in April, they are starting to grow again.

Uber has relied heavily on Uber Eats during this pandemic to make up for the losses, and the company has reported a 52% growth in reserves for this part of the company, bringing it to $ 4.68 billion.

“Although our share of rides with drivers has been greatly affected by the pandemic, we have taken quick steps to ensure the strength of our balance sheet, focus additional resources on Uber Eats and prepare for any recovery scenario,” explained the CEO of Uber. Dara Khosrowshahi in a statement.

“Along with the growth in food delivery, we are encouraged by the first signs that we are seeing in markets that are starting to open up again.”

In addition to these declines in revenue, Uber had already warned that expects a deterioration in the value of some of its minority investments will be about $ 2 billion, while reducing its financial forecasts for 2020.

To reduce expenses, the company has announced that it will lay off 3,700 workers, approximately 14% of the total. Uber has also reported that it has doubled its bike and scooter business, investing $ 85 million on Thursday in Lime.


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