Uber Loses $1.1 Bln during Q3 due to Coronavirus

Uber announced a net loss of $1.1 billion during the third quarter (Q3) of the year, according to figures released after the US stock exchange closed.

Shares of the company dropped as much as 4% after-hours Thursday as the company reported third-quarter revenue that missed Wall Street’s expectations, but picked up during the company’s earnings call when the CEO said there are early signs its core ride-hailing business would fully recover from the COVID- 19 pandemic.

Here’s how the company performed versus what Wall Street analysts were expecting for the period ending September 30, 2020:

Mobility adjusted net revenue, including Uber’s core Rides business, declined 52% year-over-year to $1.37 billion for the third quarter, while delivery adjusted net revenue, including from Uber Eats, grew 190% year-over-year to $1.14 billion. Adjusted net revenue is a non-GAAP measurement that measures revenue minus driver incentives, driver referral payments, and the cost of reimbursing drivers for COVID- 19 protection equipment.

The company reiterated guidance that Uber expects to be profitable on an EBITDA basis by the end of 2021.

On a conference call to discuss results, CEO Dara Khosrowshahi said while the last 8 months had been tough, there were early signs that the company’s core mobility business would fully recover.

He said Uber had improved its position in 11 of the top 15 markets in the United States during the third quarter including New York City, Chicago, and Atlanta.

He added that Uber rides were coming back faster than other transportation alternatives, including mass transit in many cities and taxis in New York City.

A “no-mask-no-ride” policy is helping the company coax riders back out, despite COVID- 19 concerns.

The CEO said, “Uber comes back when cities come back. If anything, Uber is an advantaged form of transportation versus others.”

Uber shares had skyrocketed on Wednesday and continued climbing Thursday ahead of earnings, after the company’s proposed ballot measure, Proposition 22, won voters’ support in California elections.

Prop 22 allows Uber, along with its peers and competitors Lyft, Instacart, and DoorDash, to treat their drivers and couriers as independent contractors, not employees.