Uber posts report gross bookings in March as ride-hailing bounces again
Adam Galica | CNBC
The tech big’s mobility unit was hit laborious by the coronavirus pandemic final yr as lockdown restrictions led to a collapse in demand for ride-sharing providers. It is benefited from a increase in meals supply, nevertheless, which helped to restrict losses in 2020.
Uber mentioned its mobility enterprise posted its finest month since March final yr, with an annualized run price of $30 billion, which was up 9% from a month earlier. Its supply unit, in the meantime, reached a report annual run price of $52 billion in March, greater than doubling from the earlier yr.
“As vaccination charges improve in the USA, we’re observing that client demand for Mobility is recovering quicker than driver availability, and client demand for Supply continues to exceed courier availability,” Uber mentioned in a submitting with the U.S. Securities and Alternate Fee.
Final week, Uber introduced it will spend $250 million in a one-time “stimulus” package deal aimed toward getting drivers again on the highway. The cash will go towards bonuses for drivers, assured pay and on-boarding new Uber drivers. It comes as states start to drag again a few of their pandemic restrictions and roll out vaccines.
Uber stays closely loss-making although, dropping almost $6.8 billion final yr. There have lengthy been doubts about whether or not Uber’s enterprise mannequin works. However the firm believes it may nonetheless turn out to be worthwhile by the top of 2021 on an adjusted EBITDA foundation. Lyft, Uber’s predominant rival within the U.S., has made an analogous dedication.
Final month, Uber reclassified all 70,000 of its U.Okay. drivers as staff entitled to a minimal wage and different employment protections after the nation’s Supreme Courtroom dominated a bunch of Uber’s drivers ought to be classed as staff, not unbiased contractors. The transfer is anticipated to result in larger prices for Uber and will have broader ramifications for the gig economic system.