Uber Did Better In The Second Quarter Despite All The Drama, But Still Needs To Get Its Act Together Soon
Uber, despite all the drama and turmoil surrounding the ride-hailing company, actually did better in the second quarter compared to the first quarter, showing resiliency for a business that is still growing.
As a private company, Uber is not required to publicly release its financial statements per quarter. However, earlier this year, the company started releasing information on its performance, which continues to improve amid an exhaustive list of problems.
Uber Bookings, Revenue Grow In Q2
For Uber's second quarter, the company saw a 17 percent increase in gross bookings revenue from the first quarter to $8.7 billion. Adjusted net revenue, or what the company receives after it pays its drivers, also grew to $1.75 billion, compared to $1.5 billion in the first quarter.
Meanwhile, compared to the second quarter of 2016, global ride requests grew by 150 percent.
However, underlying these improvements is the fact that Uber posted an adjusted net loss of $645 million for the quarter, still a significant amount even if it is an improvement from the $750 million loss that was booked in the first quarter.
While the growth in Uber's revenue shows that its core ride-hailing business is still going strong, the scale of the company's quarterly losses is unprecedented among Silicon Valley startups. In addition, investors have become increasingly worried as Uber executives have not offered a timetable for when the company can be expected to start turning in profits.
Uber Problems Still Unsolved
The list of Uber issues have grown relentlessly since the start of the year, including the legal battle against Google unit Waymo over self-driving technology, the data privacy audits that has been required by the FTC due to Uber's failure to protect the personal information of customers and drivers, and the complicated search for the replacement of former Uber CEO Travis Kalanick.
The fact that Uber was able to post increased bookings and revenue in the second quarter despite all these problems, however, should not come as a sign that the company can take a breather. Uber is currently without a leader, which is a glaring flaw for a company that is struggling through a myriad of controversies.
Apparently, though, most Uber users don't care and are willing to turn a blind eye to these issues for the conveniences that the ride-hailing service offers.
Uber did better in the second quarter, but if it wants to stick around, it will need to address all of its problems swiftly, starting with finding the right person to serve as its leader.