Uber loses $2.9 billion in Q1 despite 14% revenue growth

San Francisco, May 8 (SocialNews.XYZ) Ride-hailing major Uber has reported a net loss of $2.9 billion in the first quarter of this year, even as its revenue reached $3.54 billion in Q1 2020 from $3.1 billion a year ago, a growth of 14 per cent.

The net loss in Q1 2020 includes stock-based compensation expense of $11 million in Q1 2019 and $277 million in Q1 2020 as well as pre-tax impairment write-downs of $2.1 billion, partially offset by a pre-tax gain on business divestiture of its Uber Eats India operations of $154 million, the company said on Thursday.

In Q1 2019, Uber's net loss was $1 billion, which includes $11 million in stock-based compensation expense.

Uber said its gross bookings in Q1 2020 grew to $15.8 billion, up 8 per cent year-over-year, or 10 per cent on a constant currency basis, with rides declining 3 per cnet and Eats growing 54 per cent year-over-year, respectively, on a constant currency basis.

Due to lower trip volumes and its current hiring freeze, Uber has announced a reduction of its customer support and recruiting teams by approximately 3,700 full-time employee roles.

Earlier this week, it announced a change to the geographic footprint of Uber Eats operations affecting eight markets.

"We will discontinue Uber Eats in the Czech Republic, Egypt, Honduras, Romania, Saudi Arabia, Uruguay and Ukraine, and will transfer Uber Eats operations to our Careem subsidiary in the United Arab Emirates," the company said.

Uber on Thursday announced it is folding its JUMP e-bike and e-scooter business into Lime.

"Our customers will continue to have access to e-bikes and e-scooters in our apps. As part of the transaction, we made an additional convertible note investment of $85 million in Lime," Uber said.

Source: IANS