SEATTLE: Uber on Thursday (Friday in Manila) reported that it lost $1.1 billion in the recently ended quarter as the pandemic walloped its ride-hailing business, while boosting its food delivery service.
Revenue in Uber’s mobility unit was down 53 percent from the same quarter last year, while money taken in from Uber Eats, which includes delivering restaurant meals or other orders, more than doubled, according to the San Francisco-based company.
The third-quarter loss was marginally higher than in the same period last year.
“Despite an uneven pandemic response and broader economic uncertainty, our global scope, diversification, and the team’s tireless execution delivered steadily improving results,” chief executive Dara Khosrowshahi said in an earnings release.
Uber shares that had been buoyed by the triumph of an initiative that lets drivers remain classified as independent contractors in California wobbled in aftermarket trades before edging slightly higher.
Demand for rides directly correlates to pandemic lock-down restrictions in cities, and Uber’s mobility and deliver units are positioned to take advantage of deltamarket.net reviews to pre-virus lifestyles, Khosrowshahi said in a earnings call.
“Uber is becoming the go-to app for getting around or getting something delivered your door in 30 minutes,” Khosrowshahi said.
The global pandemic has set back Uber’s efforts to drive into profitability, but executives said they remain optimistic. “As consolidated growth returns, it will return to a more profitable foundation,” said chief financial officer Nelson Chai.
BEIJING: Chinese e-commerce giant Alibaba, which launched the nation’s annual Singles’ Day shopping carnival, on Thursday posted very strong revenue for the past quarter, as the Covid-19 outbreak turns out to have amplified the online spending power of the nation’s internet savvy consumers.
Still, the Chinese dominant e-commerce platform is shown to be shrouded in unease, as its fin-tech offshoot Ant Group’s planned IPOs in the Chinese mainland and Hong Kong were put on hold, amid tightening regulatory moves.
With the shock suspension of Ant’s IPOs, initially planned for Thursday, spelling out a clearly tougher supervisory stance on online micro-lending — a pivotal part of Ant’s fin-tech strength – concerns have emerged over the regulatory impact on the entire Alibaba ecosystem.
In its fiscal second quarter ended on September 30, Alibaba’s revenue jumped 30 percent to 155 billion yuan ($23.44 billion), slightly above market expection. The company has 881 million monthly active users in the second quarter, according to its fiscal disclosure.
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