Uber''s stock plummets Wednesday after the company claimed to have suffered a serious loss in the first three months of this year despite a drop in its ride-share business.
Uber''s quarterly income surpassed $2.5 billion in year on year, topping the sum used in its food delivery service for the first time since the epidemic. Despite overall income more than doubled in comparison to the same year last year, Uber logged a net loss of $5.9 billion (roughly Rs. 44,983 crore).
According to a report, the loss was attributed to reassessing its stakes in Grab and Didi in Asia and Aurora, an autonomous driving technology company.
"Our (first quarter) results confirm that we''re on a strong path emerging from the epidemic," Uber chief executive Dara Khosrowshahi said on an earnings call.
Lyft, an Uber competitor, reported its earnings a day earlier, stating that ridership was reduced due to the Omicron COVID-19 model in January, but that demand relowed dramatically the following two months.
Lyft reported that it lost $196.9 million (roughly Rs. 1,500 crore) in the first quarter, the majority of which was due to stock compensation for employees.
In the face of rising fuel costs and ongoing worries about the epidemic, both companies told analysts they expect to invest in keeping drivers on the platform.
Uber''s stock was down more than seven percent in midday trading, while Lyft''s stock was down more than 31 percent due to expectations that it would spend more and bring in less in the coming months.
"Lyft is spending money like a rock star from the 1980s, and this will have a severe negative reaction from investors in an already jittery market," says Wedbush analyst Dan Ives after the results were released.
"This lack of effort to get drivers back on the platform is a necessary mistake to propel the Lyft story into its next phase of growth."
When it compares to the same period a year ago, Uber reported a revenue increase of 44% to $2.5 billion (roughly Rs. 19,060 crore) and said the company''s Freight platform connecting truckers with loads posted its first profitable quarter.
Uber has been pursuing a strategy of becoming a mobile app hub for transportation options, enticing people to use it for rides to purchase meal deliveries and vice versa.
"We believe that Uber is better equipped than peers to benefit from the ridesharing recovery," said Angelo Zino, an CFRA senior equity analyst, noting that partnerships with New York taxi drivers are important.
"While uncertainty about consumer/travel spending affect our future, we prefer Uber''s multi-app platform strategy."