Uber Technologies Inc. have released their second quarter financial results, and they make for some grim reading in relation to their ride-hailing service.
Results show that their Mobility Gross Bookings (their ride-hailing service) declined 73%, with revenue from the service declining 67% year-over-year.
Despite such a damaging drop in revenue, Uber say they are still on course to turn profit by the end of the year.
This could be due to their Eats segment, or as named in their financial charts "Delivery", which saw gross bookings grow 122% year-over-year, excluding exited markets.
Sales for both combined services fell 29% in the second quarter to $2.24 billion, ending a decade of unchecked growth.
“Our team continues to move at Uber speed to respond to the pandemic’s impact on our communities and on our business, leading our industry forward with new products and safety technologies, and harnessing the strong tailwinds driving exceptional growth in Delivery, with Gross Bookings growing 122 percent year-over-year excluding exited markets2,” said Dara Khosrowshahi, CEO.
“We are fortunate to have both a global footprint and such a natural hedge across our two core segments: as some people stay closer to home, more people are ordering from Uber Eats than ever before.”
CFO Nelson Chai, added: “Our Mobility segment generated $50 million in Adjusted EBITDA profit, despite a 73 percent year-over-year decline in Gross Bookings, on a constant currency basis.
“Meanwhile, we improved our Delivery Adjusted EBITDA margin by 33 percentage points, and took quick and decisive action to remove over $1 billion in annualized costs across the entire company, reducing Corporate G&A and Platform R&D costs by over $150 million compared to last quarter.
“All this, in addition to our strong balance sheet, bolsters our continued confidence that we will achieve Adjusted EBITDA profitability before the end of 2021.”