Sawt Falasteen - Uber posts quarterly loss, but revenue exceeds expectations

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Uber posts quarterly loss, but revenue exceeds expectations
Uber posts quarterly loss, but revenue exceeds expectations / Photo: DENIS CHARLET - AFP/File

Uber posts quarterly loss, but revenue exceeds expectations

Uber on Tuesday reported better-than-expected revenue in the second quarter, fueled by strong demand for the San Francisco-based company's ride-hailing and food delivery services.

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Revenue more than doubled to $8.1 billion in the three months through June -- a 105 percent increase. Though it still posted a net loss of $2.6 billion, investors reacted positively: shares shot up more than 12 percent, to $27.58, in pre-market trading.

The company posted $1.8 billion in revenue from its freight operations. It also said the boost in revenue was partially explained by a change in how it accounts for its rides business in Britain.

Uber notched gains in monthly active platform consumers, gross bookings and trips compared with a year ago, reflecting higher demand but also a higher number of drivers for its signature ride service and food delivery operations.

Uber CEO Dara Khosrowshahi said both consumers and earners were at "all-time highs."

"Last quarter I challenged our team to meet our profitability commitments even faster than planned -- and they delivered," Khosrowshahi said in a statement.

Uber primarily attributed its loss to the falling value of its investments in financially strapped companies such as Singapore's VTC Grab, US self-driving vehicle start-up Aurora and Indian food delivery service Zomato.

F.AbuZaid--SF-PST