Monthly 100+ Million Customers But The Business Remains At A Loss For Uber

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Ride Sharing Gets Costly for Uber Business
Ride Sharing Gets Costly for Uber Business

The number of Uber customers is still growing, but the company is still struggling to find a business model that is profitable.

The financial results shared by Uber and relating to the second quarter of the year return the image of a company that, in the face of continuous growth in the number of customers who rely on what remains its core business (mainly linked to ride sharing ) still struggling to be profitable. Among the most interesting data is the one related to the volume of users who go up one of the group’s vehicles every month to reach their destination or who rely on the app for home delivery of food (UberEats): now they are more than 100 million.

Uber: 100 million customers a month …

In Q2 2019, the number of journeys handled increased by 35% compared to the same period last year, reaching 1.67 billion globally. Positive also for the revenues, with a + 14% that brought them to 3.17 billion dollars, however lower than the expected 3.36 billion dollars. In general, growth is slowed.

And it is precisely with regard to the aforementioned UberEats  that there is another surge: + 140% in deliveries compared to the second quarter of 2018. This becomes a way to acquire new user-customers and retain them, as emphasized by the company itself.

Over 40% of new Eats members had never used the Uber platform before.

… but the business remains at a loss

However, it is not all rosy. The losses were bedded in the three months to 5.24 billion dollars. Of these, 3.9 billion were allocated to employees as economic recognition (in shares) following the May IPO. Another 289 million ended up in the drivers’ pockets as a “driver appreciation award”. Outputs that will not therefore affect the next quarterly report again.

For the future, the company seems to be considering the introduction of a sort of all-in-one subscription which, with a fixed monthly cost, could offer users free delivery of food at home and discounts on ride sharing rides.

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