Uber Technology announced that its quarterly sales in the January-March period of 2021 fell 11% year-on-year to $2.93 billion.
According to CNBC and Market Watch, Uber Technology made the announcement in its quarterly settlement announcement from January to March this year. Its sales for fourth consecutive quarter were below its previous year’s performance.
However, delivery services, including food delivery, saw their sales surge 3.3 times in the same period last year.
Uber’s final profit or loss for the quarter was $108 million. It is a sharp improvement from the $2.936 billion deficit due to Covid-19.
Uber shares plunged despite the sharp improvement
Uber shares plunged 3.4 percent in New York on the 5th and 4.6 percent in overtime trading. As quarterly sales fell short of the pre-market estimate of $3.27 billion.
According to Uber’s sales by business, the mobile service sector, including vehicle sharing, plunged 65% year-on-year to $853 million.
The Supreme Court has guaranteed the minimum wage as up to 70,000 Uber drivers are treated as workers under local employment law in the UK. It resulted in a $600 million drop in sales from the previous practice.
On the other hand, sales in the delivery service sector, including food delivery, jumped 3.3 times to $1.74 billion as telecommuting increased due to the COVID-19 effect.
The share of sales in the stomachache service sector rose sharply from 15% to 60% in the same period last year, becoming Uber’s main business.
Total amount of use of various services rose 24 percent to $19.536 billion, the highest quarterly level ever.
The monthly average number of users fell 5 percent to 98 million.
After the adjustment, which Uber values as its revenue goal, EBITDA (Earnings before amortization of interest payment tax deductions) posted a deficit of $359 million. The same period last year improved significantly compared to the $612 million deficit. The deficit is down $100 million from the previous year.
