Uber made losses of $1.2 billion for Q3 FY2020, far less than the losses of $5.6 billion it made last quarter, and 18% higher than the losses of $986 million it made the same quarter last year. Even so, revenue grew by 30% YoY to $3.8 billion. Revenue was $3.1 billion and $3 billion for Q2 and Q1 2019 respectively.
- Revenue growth accelerated and Adjusted Net Revenue growth accelerated to 30% YoY and 33% YoY respectively
- Rides Adjusted EBITDA was $631 million, up 52% year-on-year
- $1 billion in weekly gross bookings
- Gross Bookings grew 29% YoY by $3.7 billion to $16.5 billion
- 26% year-on-year increase in MAPCs to $103 million from $82 million
Uber’s food delivery and Freight divisions see higher growth: Uber’s Eats and Freight verticals drove monthly active platform consumers, and saw more bookings and revenue than Rides. While gross bookings grew by 73% and 81% for Rides and Freight respectively, revenue grew 64% and 78% respectively. In contrast, gross bookings for Rides grew 20%, and revenue from rides only grew 19%, even though Rides still made up 82% of Uber’s total revenue.
The UberEats strategy is to invest aggressively into markets where Uber is confident that it can establish or defend a first or second position over the next 18 months, the company said.
Policy and regulatory developments around Uber:
- Positive independent contractor rulings from both the US, via Department of Labor Letter in April and Brazilian Federal Government.
- The passage of the mobility law in France, which includes a reaffirmation of independent classification and
- Return to Vancouver after 7 years away
Generally speaking, our priorities remain the same. Secure regulations that allow the business to grow and enable individuals to funds flexible earnings opportunities on our platform. — Dara Khosrowshahi, Uber CEO
What Uber Money is focused on: Uber announced its new Uber Money division last week to handle its financial services business. Uber drivers will now have a way to get money earned on rides instantly via the Uber Debit account. Drivers in the US (and other countries soon after) can sign up for a no-fee debit card that is linked to an account provided by Green Dot. This will come with cashbacks on gasoline between 3-6% for the highest tier of Uber Pro drivers.
Uber Wallet will allow easy tracking for drivers’ earning and spending history, and will enable them to manage and move money. Uber Money’s focus is enhancing the opportunity for drivers, for whom getting paid quickly matters a lot, CFO Nelson Chain said.
NB: All percentage changes are year-over-year, unless specified.