Pandemic drives Uber $1.8bn into the red
UBER lost $1.8bn (£1.37bn) in the second quarter of the year, as its taxi business plummeted by 75pc amid the pandemic and its food delivery business failed to make up the shortfall.
The app-based company lost more than Wall Street expected as it disclosed the full impact of Covid-19, which brought its global transport operations almost to a halt.
Its Eats food delivery business fared better, with revenue doubling.
Overall revenue fell by 29pc and the number of monthly active consumers dropped by 44pc since last year.
Shares fell by 5pc in after-hours trading following the results.
Dara Khosrowshahi, Uber’s chief executive, said: “As some people stay closer to home, more people are ordering from Uber Eats than ever before.”
Earlier yesterday, reports said that Microsoft was seeking to expand its takeover of social media firm TikTok to include the app’s European and Indian operations, setting up a clash with its Chinese owners.
The American software titan appears to be at odds with TikTok’s parent company ByteDance over whether it should be allowed to buy operations outside those in the US.
Microsoft is now pushing to acquire all of TikTok’s global holdings, reports said, potentially including in the UK. One source denied the claims.
Dara Khosrowshahi, chief executive, focused on a doubling of revenues for Uber’s food delivery business