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China’s crackdown on big tech companies continues to resonate around the world. On Thursday, Uber said it lost $2.4 billion in its most recent quarter, largely due to its investment in Chinese ride-hailing company Didi.
Didi investment weighed heavily on what was a highly optimistic quarter for Uber as both customers and drivers increasingly return to the road. The loss was 123 percent more than in the same quarter a year ago, when Uber’s business was hit by the pandemic.
Since Didi, China’s largest ride-hailing company, went public in July, increased pressure About data security, privacy and worker protections from Beijing. The compression caused Didi’s stock price to plummet, resulting in a $3.2 billion hit for Uber, which sold its Chinese business to Didi in 2016 in exchange for equity. This loss was offset by other investments.
Uber, which is headquartered in San Francisco, said besides its loss at Didi, its business continues to recover from the pandemic. Revenue was $4.8 billion, up 72 percent year-over-year, beating analyst expectations. Uber’s total revenue before gross bookings, fares and payments to drivers rose 57 percent to $23.1 billion.
The company said it achieved its first profitable quarter after excluding certain expenses, such as stock compensation and Didi losses.
Saying that drivers were continually returning to the platform in the third quarter, Uber added that the company has added about 640,000 new drivers and couriers to its platform since January.
“Our early and decisive investments in driver growth are still paying dividends as drivers consistently return to the platform and lead to further improvements in the consumer experience,” said Dara Khosrowshahi, Uber’s CEO.
Mr Khosrowshahi added that drivers are also returning to Uber and are starting to travel more than before the pandemic. “Mobility Gross Bookings are up 18 percent in the last two months alone, surpassing 2019 levels this Halloween weekend,” he said.
In the third quarter, Uber said 109 million users were active on its platform, including drivers and customers of Uber Eats, its food delivery business. The figure increased by 40 percent compared to the same period of the previous year.
On Tuesday, Uber’s biggest competitor in the United States, Lyft, also said its drivers were returning. Lyft reported revenue of $864.4 million, up 73 percent from the same period last year, and a loss of $71.5 million, down 84 percent.
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