Uber Recovers Slowly, But Still Loses Money On Services

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Uber is catching up on the pace of growth hurt during the pandemic, but the costs still raise questions about the company’s ability to make money. Meanwhile, the delivery service accelerates with speed, indicating that domestic habits are solidifying, even with the reduction of restrictions due to covid-19.

The financial statement for the period from April to June 2021 (Q2), released on Wednesday (4), was the company’s best quarterly report since the beginning of the health crisis. Uber registered total sales of US$ 3.929 billion, a result 105% higher than that registered in the second quarter of last year.

The company announced that it had a profit of US$ 1.14 billion, the result of an accounting adjustment that recognized the recent appreciation of the company’s stakes in Didi Chuxing, the main passenger transport service in China and owner of 99 in Brazil, and in the startup Aurora, specializing in autonomous cars.

The service that Uber has developed to deliver food, according to the company, is making even more money. Segment revenue totaled $1.96 billion, more than double from a year ago. However, the delivery service accumulates losses as it expands.

Falling stocks

Despite the positive results of Uber, investors are focusing on other parameters to decide to buy shares in the company and the shares retreated 4% after the disclosure of the balance sheet.

One of the indicators used is adjusted earnings before interest, taxes, depreciation and amortization, known as EBITDA, which recorded a negative result of US$ 509 million.

The biggest loss is due in large part to bonuses and other incentives that Uber is offering drivers to return to transport service after many dropped out due to safety concerns during the worst time of the pandemic.

Last quarter, the company recorded a total of 1.51 billion trips offered, more than double the same period last year, but still 30% below levels two years ago.

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