The ride-hailing giant beat estimates on the top and bottom line and turned an unexpected one-tine profit during the second quarter of the year. The company’s net income was $1.1 billion according to Uber. That was largely thanks to unrealized gains of $1.4 billion in Didi as well as $471 in Aurora. Over the last month, shares of ride-hailing giant Didi declined about 37%, nevertheless, decreasing Uber’s stake in Didi by $2 billion last week. However, Uber’s operating loss was still $1.19 billion.
The company’s EBITDA loss was $509 million, down $150 million from the first quarter, but an improvement of $328 million from 2020. The company reconfirmed its expectation that it will reach profitability on an adjusted EBITDA basis by the end of 2021.
Uber and the coronavirus pandemic
Many companies are struggling to deal with challenges created by the coronavirus pandemic, and Uber is not an exception. So far, the company’s Eats segment has helped Uber to cope with coronavirus-related issues. When people stopped traveling due to the pandemic, they turned to food and goods deliveries. The company said its delivery business stayed strong even as restrictions eased around the globe.
Delivery revenue outperformed its core ride-hailing business in the second quarter of the year. In an update to shareholders, San Francisco-based company said that its number of delivery merchants surpassed 750,000 in the second quarter.
The ride-hailing giant and rival Lyft struggled with supply and demand imbalances because of the pandemic. The company’s CEO Dara Khosrowshahi is not satisfied with the results. He said on Uber’s call with investors that prices and wait times are not meeting company targets.
Uber did not provide an exact number of drivers, but the company’s CEO said he was optimistic about growth rates after Uber invested a lot of money in bringing people back. It added 30% more drivers in the U.S. from June to July.
The company reported 1.51 billion trips on the platform in the second quarter, up 4% from the first quarter. It said its drivers, as well as couriers, earned an aggregate $7.9 billion during the quarter.
Its main American rival, Lyft, also reported financial results this week. Lyft reported its first quarterly adjusted EBITDA profit, posting $23.8 million. Uber’s largest American competitor also beat Wall Street guidance on both top and bottom lines.