According to the announcement made by Uber about its financial results for the first quarter of 2020, they had a loss of $3 billion. Uber which provides ride services along with the delivery of foods globally was in deep loss.
The company said that its net loss excluding the impairment write-downs, net of the tax benefit would have been $1.1 billion. The loss from operations which perhaps give a better idea of the company’s performance grew from 14 percent in the quarter on a year-over-year basis to $1.26 billion. The adjusted EBITDA was a loss of $612 million.
Uber’s revenue in the first quarter grew 14 percent (year-over-year) to $3.54 billion. The revenue for Europe, Middle East & Africa grew 13 percent year-over-year to $552 million.
Gross bookings grew 8 percent year-over-year to $15.8 billion, but most of this growth came from Eats which grew 52 percent year-over-year to $4.68 billion. Rides declined 5 percent year-over-year to $10.87 billion.
Earlier this week, the company announced cutting 3,700 employees from its customer support and recruitment teams across the world. Careem, Uber’s Middle Eastern subsidiary had laid off 31 per-cent of its workforce a day before.
Dara Khosrowshahi who is the Chief Executive Officer of Uber in a conference call with investors on Thursday said that COVID-19 has had a severe impact on the rides and that he would not sugarcoat the real condition. He further said that in April the business had gone down by 80 per-cent.
Uber’s Q2 numbers for this year will take a bigger hit as the business in April was worse than March and the numbers won’t go back to pre-COVID (January-February) level at least for the rest of the months in Q2.
Uber CEO in a statement, added that though their rides business have been hampered by the COVID-19, yet to prepare them for any recovery scenario, they have taken quick action to preserve the strength of their balance sheet, and have been focussing on additional resources on Uber Eats, He further said that due to the lockdown a surge is seen in food deliveries and since now the markets are again opening back, they are being encouraged.