Uber Europe sales fall but shares soar

A DRIVER shortage in the UK and slowing demand for takeaways has left Uber with falling sales in Europe.

Revenue remained broadly flat in the region in the second quarter once accounting changes were stripped out. That contrasted with soaring sales in the US as the end of Covid restrictions sparked huge demand.

Uber has previously said it was seeing similar spikes in demand for rides in the UK but has repeatedly complained about a shortage of drivers. While on an earnings call yesterday, chief executive Dara Khosrowshahi said it remained a problem, saying: “We need more drivers in the UK.”

London is one of Uber’s five most important markets globally. Travellers spent £806m with Uber between April and June, accounting for half of the company’s Europe, Middle East and Africa income.

A shortage of drivers and sluggish growth in its Ubereats food delivery division left its sales in the region shrinking by $66m (£54m) during the three months to June 30 to $863m once accounting changes were stripped out. In early 2021 the UK’S top court ruled that Uber drivers were employees of the company and not self-employed contractors, as it had insisted. That has led to more revenue being recognised up front in its accounts.

Weakness in Europe came despite sales across the entire company doubling to $8.1bn. Globally, journeys jumped 24pc to 1.8 billion worldwide.

Uber posted a net loss of $2.6bn, halving the previous quarter’s losses and generating net positive cash flow for the first time in its history.

“Last quarter I challenged our team to meet our profitability commitments even faster than planned, and they delivered,” said Mr Khosrowshahi.

The firm’s share price soared 16pc in response to the better-than-expected figures.