Uber posts loss but revenue beats expectations

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Uber on Tuesday revealed a sharp loss in the second quarter of the year despite making more revenue than expected, mainly on demand for the company’s ride-hailing and food delivery services.

The Californian company obtained revenues of 8,100 million dollars between April and June, which represents an increase of 105% compared to the same period of the previous year.

Although it still posted a net loss of $2.6 billion, investors reacted positively, with the stock soaring more than 12% to $27.58 in pre-open trading on Wall Street.

The company earned $1.8 billion in revenue from its freight operations.

Uber saw the number of active monthly customers, gross bookings and rides increase compared to a year earlier, reflecting higher demand as well as a larger number of drivers for its ride service and food delivery operations.

Uber CEO Dara Khosrowshahi said both customers and revenue were at “all-time highs.”

“Last quarter I challenged our team to meet our profitability commitments even faster than anticipated, and they delivered,” Khosrowshahi said in a statement.

Uber mainly attributed its loss to falling value of its investments in financially troubled companies such as Singapore’s VTC Grab, US self-driving car start-up Aurora and Indian food delivery service Zomato.

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