Uber announced Tuesday, Nov. 1, a revenue growth that is above the expectations of Wall Street, suggesting the firm has continued to recover from a severe fall as drivers return to the platform. However, it also reported a net loss, which may be attributed in part to the company's investments in other ride-hailing businesses.
The experts on Wall Street anticipated revenue of $8.12 billion and a net loss of $361 million for the company.
The Q3 Revenue Growth
As per The New York Times report, the revenue for the third quarter (Q3) was $8.34 billion, representing a 72% growth rate from the same period a year earlier. The ride-hailing portion of Uber's company expanded by 73%, while the delivery portion soared by 24%.
According to the firm, the number of individuals using Uber monthly increased by 14% from July through September, reaching 124 million users. They were responsible for a total of 1.95 billion rides, an increase of 19% over the previous year.
During premarket trading, the price of Uber shares increased by more than 8%.
The Q3 Net Loss
In the third quarter, the firm recorded a net loss of $1.2 billion, including $512 million due to investments made in other ride-hailing services, such as the China-based transport company Didi.
Looking on the bright side, Uber's business activities brought in more money than they lost during the Q3, resulting in the generation of free cash flow in the amount of $358 million.
Uber's Strong Core Business
Other technology businesses have given signs of an industry-wide slowdown during a period of persistent inflation, higher interest rates, and greater economic volatility. In response, Uber's chief executive Dara Khosrowshahi has stressed cost-cutting and profitability.
The exec said in a statement via The New York Times that even if the overall macroeconomic climate is still unclear, Uber's core business is stronger than it has ever been.
Uber has made a priority out of hiring new drivers and keeping the ones it already has, even if the fuel costs have remained persistently high and the company has been involved in legal conflicts about the employment status of its drivers.
It was said that the number of drivers now using the platform has increased to levels comparable to what we have seen before the Covid outbreak.
Uber's Recent Service Update
Last week, Uber announced additional security measures that have been implemented to protect its drivers. This is the ability to capture videos during the rides.
However, the video recording function is currently under beta testing and is available for a small number of drivers. Only three cities in the US are utilizing and testing this tool, namely Louisville, Cincinnati, and New York City.
Apart from the US, the new function is now being tested in Brazil, particularly in Joo Pessoa and Santos.
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This article is owned by Tech Time
Written by Trisha Kae Andrada
