Uber Posts 14% Increase in Q1 Revenue

Uber Technologies’ ride service bookings recovered in recent weeks as the company expects a coronavirus-related downturn will delay the objective of becoming profitable by a matter of quarters, not years, Chief Dara Khosrowshahi stated Thursday.

Uber Posts 14% Increase in Q1 Revenue

He spoke after Uber mentioned it had seen encouraging signs in markets blown by the pandemic and posted a 14% increase in revenue for Q1, backed by a leap in food-delivery orders at its Uber Eats business.

Khosrowshahi stated strict cost-cutting, to the tune of over $1 billion this year, would ensure the company stayed on track. Uber Wednesday stated it would sack 3,700 full-time employees or approximately 17% of its head count.

The company, which makes the majority of its income through ride-hailing, stated trip requests had plunged 80% around the world in April but had been slowly recovering. In the U.S., Uber’s most important market, ride requests, have been up 12% last week from their lowest level in April.

In large cities in Georgia and Texas, U.S. states that have reopened parts of their economic system in recent weeks, trips had been up around 45% from their low point in April, Uber stated.

Global lockdown orders geared toward containing the spread of the virus had been a silver lining for Uber’s loss-making food delivery unit, with many new prospects and restaurants signing up for the service as eateries were closed.

Uber posted $3.54 billion in total income for the first three months of the year, roughly in line with analyst estimates, but nonetheless posted a $2.9 billion loss in the interval. That included a $2.1 billion pretax write-down of the value of some of Uber’s minority fundings.