Home » Uber Lost $2.4 Billion, Thanks Largely to Didi Investment

Uber Lost $2.4 Billion, Thanks Largely to Didi Investment

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China’s crackdown on its huge tech firms continues to have reverberations all over the world. On Thursday, Uber stated it misplaced $2.4 billion in its most up-to-date quarter, largely due to its funding within the Chinese language ride-hailing firm Didi.

The Didi funding weighed closely on what was in any other case a reasonably upbeat quarter for Uber, as each clients and drivers more and more returned to the highway. The loss was 123 p.c greater than the identical quarter a 12 months in the past, when Uber’s enterprise was reeling from the pandemic.

Since Didi, China’s largest ride-hailing firm, went public in July, it has confronted rising strain from Beijing on knowledge safety, privateness and employee protections. The crackdown induced Didi’s inventory worth to tumble and led to a $3.2 billion hit for Uber, which bought its Chinese language enterprise to Didi in 2016 in change for fairness. That loss was offset by different investments.

Apart from its loss on Didi, Uber, whose headquarters are in San Francisco, stated its enterprise continued to get better from the pandemic. Its income was $4.8 billion, a 72 p.c enhance from the identical interval a 12 months in the past, which exceeded analyst expectations. Uber’s gross bookings, the whole quantity it brings in earlier than charges and funds to drivers, elevated 57 p.c to $23.1 billion.

The corporate stated that, excluding sure bills like inventory compensation and the Didi losses, it had reached its first worthwhile quarter.

Drivers steadily returned to the platform within the third quarter, Uber stated, including that the corporate had added practically 640,000 new drivers and couriers to its platform since January.

“Our early and decisive investments in driver progress are nonetheless paying dividends, with drivers steadily returning to the platform, resulting in additional enchancment within the client expertise,” Dara Khosrowshahi, Uber’s chief government, stated in an announcement.

Riders have been additionally returning to Uber, and starting to take extra journeys than they’d earlier than the pandemic, Mr. Khosrowshahi added. “Mobility Gross Bookings are up 18 p.c over simply the final two months and this Halloween weekend surpassed 2019 ranges,” he stated.

Within the third quarter, Uber stated 109 million customers have been energetic on its platform, together with riders and clients of Uber Eats, its meals supply enterprise. The determine was up 40 p.c from the identical interval a 12 months in the past.

On Tuesday, Lyft, Uber’s greatest competitor in the USA, additionally stated its drivers have been returning. Lyft reported income of $864.4 million, a 73 p.c enhance from the identical interval final 12 months, and a lack of $71.5 million, an 84 p.c lower.

Uber’s shares have been up barely in after-hours buying and selling.

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