Uber Posts Massive Q1 Loss as Food Delivery Surges Amid Pandemic
Uber reports a $2.9 billion first-quarter loss driven by impairment charges, while its Eats delivery segment sees a 50% jump in gross bookings. Despite laying off thousands of employees, the company remains optimistic as ride volumes show signs of recovery.
Uber reports a massive $2.9 billion net loss for the first quarter, largely due to $2.1 billion in impairment charges. While the company's revenue hits $3.54 billion, its core Rides segment experiences a 5% drop in gross bookings compared to a year ago as the pandemic severely limits travel.
The food delivery segment, Uber Eats, provides a bright spot by surging over 50% in gross bookings year-over-year. CEO Dara Khosrowshahi highlights that more restaurants are joining the platform and believes this shift toward home delivery represents a long-lasting cultural change that expands the company's future opportunities.
To offset the financial strain, Uber lays off 3,700 employees and Khosrowshahi forgoes his base salary for the rest of the year. Despite these cuts, the company leads a $170 million investment round into electric scooter company Lime and expresses optimism as ride volumes steadily increase after hitting a low in mid-April.