Shares of Uber, which rose on 16.7% since the beginning of the year, fell 2.65% after the close of trading on Thursday, in response to the results of the second quarter.
Uber management called the quarter “the hardest in history”, given the sharp drop in passenger traffic due to the COVID-19 pandemic. At the same time, the resumption of growth of the global business of the Uber taxi service will further depend on the ability of different countries to curb the incidence.
For the second quarter, which ended on June 30, Uber reported a loss of $ 1.02, which is $ 0.16 worse than analysts’ estimate of a loss of $ 0.86 per share. However, the rate is better than in the previous quarter and the corresponding quarter last year.
The total loss for the second quarter was $ 1.78 billion compared to a record loss of $ 3.17 billion in the second quarter of last year.
Total quarterly revenue fell by 30% and amounted $ 2.2 billion, that slightly exceeded the analytical estimates of $ 2.18 billion.
During the quarter Uber published balance of available cash and cash equivalents of $ 8.1 billion, compared to $ 13.7 billion year earlier.
The two main divisions of Uber showed very different results: general global taxi dropped by 73%, while overall order food delivery service Eats increased by 113%.
General ordering taxi was $ 3.05 billion., which is below the expected Wall Street $ 3.47 billion.
General order food serviced delivery of Eats totaled $ 6.96 billion., higher than the expected $ 6.57 billion.
Uber CEO Dara Khosrowshahi said that the pandemic “turned the service of food delivery from luxury to utilities”, stating that it does not expect a sharp drop in demand for Eats after the crisis, as consumers will have a habit of ordering food from home.
In Uber also noted the growing demand for local express delivery of small packages using UberX. According to the CEO, since its launch in early June, the service has made 3 million trips worldwide.
Concerning the global service taxi – in recent months, demand gradually recovering, but slowly. In the second quarter, travel in the leading US markets fell by 50-85%, but in leading European markets, including France, Spain and Germany, the number of trips decreased by only about 35% compared to last year.
To reduce the negative impact of the pandemic Uber closed or sold a business Eats in regions where the service does not bring profit, and dismissed about 14% of its staff (over 3500 employees). Uber has also sold its electric bicycle business Jump to a bicycle rental competitor called Lime, in which Uber is an investor.
Despite on the losses, Uber continued its expansion strategy, believing that broad international coverage would result in the company making a profit. In July, the company announced plans to buy Postmates, Eats’ competitor in the food delivery market, for $ 2.65 billion.
There is also a risk for Uber and its competitor Lyft of lawsuits that could force these companies to retrain their taxi drivers from contractors to employees, which will greatly increase companies’ labor costs and all the necessary benefits to their employees.
On Monday, December 7, Uber and startup Aurora Technologies announced an agreement under which Aurora will take over Uber’s Advanced Technologies Group, which has been developing self-governing cars. Under the terms of the agreement, Uber will receive $ 400 million, 26% of Aurora shares, and the general director of the taxi service, Dara Khosrowshahi, will […]
The American oil and gas giant Exxon Mobil had one of the worst years in its history. Exxon shares have fallen by 45.36% since the beginning of 2020. The company has lost money for three quarters in a row, and in August they were excluded from the benchmark index of “blue chips” Dow Jones Industrial […]
Shares of Lyft, which fell 16.2% since the beginning of the year but jumped 37.4% over the past week, rose 5.8% amid investor reaction to the company’s quarterly report. Lyft reported a loss for the third quarter (ended September 30) at $ 1.46, which is worse than analysts’ forecasts at – $ 0.91 loss per […]
Shares of General Motors, down by 3.7% since the beginning of the year, rose by 3.9% in trading after the company announced the results of the 3rd quarter, which ended on September 30. General Motors reported earnings per share increase of 65% to $ 2.83, which was higher than analysts expected $ 1.38. The amount […]
AMC Entertainment Holdings, which owns the world’s largest network of cinemas, presented its financial report for the third quarter of 2020. His company ended with a net loss of $ 906.5 million – 16.5 times worse than last year. In the third quarter, the company’s cinemas began to reopen after a five-month of lockdown due […]
Shares of Alphabet, which rose 18.2% over the past 6 months, rose 9% after closing trading on Thursday when the global advertising giant announced significant improvements in the reporting quarter. Google’s parent financial report far exceeded analysts’ expectations and showed a resumption of advertising revenue growth after reporting a drop in revenue for the first […]
The net loss of the second largest American oil and gas company Chevron, which accounts for the parent company, in the first nine months of 2020 amounted to 4.878 billion dollars against a profit of 9.534 billion dollars a year earlier, the company said. The diluted loss per share was $ 2.63 against earnings of […]
On Tuesday, JPMorgan Chase announced the launch of its mobile payment service QuickAccept, and on Wednesday, Visa launched its application called Tap to Phone. The purpose of both programs is to offer sellers an easy way to accept contactless payments from customers via a smartphone or tablet. According to Visa, in the context of the […]
President of the United States Donald Trump is studying the issue of prohibition of Chinese company Alibaba in the US. “Well, yes. We study and other things” – quotes his words the portal. In such way Trump answered for the question of whether the government does not intend to ban the work of other major […]Next
In the United States over the past 15 years, 25 billionaires have paid a much lower income tax than they should have. ProPublica based on confidential data from the US IRS published the investigation. In particular, among the 25 billionaires are Berkshire Hathaway CEO Warren Buffett, former New York Mayor Michael Bloomberg, Amazon founder Jeff […]Next
According to an information of Reuters, Two large Chinese companies plan to construct a solar power station with a capacity of 1 gigawatt in the Chernobyl . For project implementation, the GCL System Integration Technology company intends to get a business with the China National Complete Engineering Corporation (CNCEC). CNCEC was founded in 1985. in […]Next
In France, the antitrust regulator has fined Google € 500 million, according to the regulator’s press service. “The regulator has fined the company for non-compliance with several court rulings issued in April 2020,” the statement said. Agence France-Presse writes that the fine was imposed for “the corporation did not properly negotiate with the publishers of […]Next
On 23rd of November 2016 the Cabinet of Minister’s representatives have reported about the results in the sphere of business simplification in Ukraine . According to a report, 367 regulatory legal acts have been cancelled. It concerns a law system, notary service payment mechanism for the legal entities, agricultural sector, standard assessment calculation procedures of […]Next
Representatives of the Russian corporation Hotel Development reported the signing of an agreement for the sale of the hotel Radisson Blu Hotel Kiev Podol, previously owned by foreign shareholders. Estimated value of the transaction is approximately $ 10 million. With regard to information about the new owner of the four-star hotel in the prestigious district […]Next
Business assessments of economic growth in Ukraine have improved for the first time since the first quarter of 2020 – the index of business expectations of enterprises returned to a positive value of 108.4%. This is evidenced by the results of a survey of company executives conducted by the National Bank of Ukraine in the […]Next
Uwe Christian Eschner, the Austrian investment banker intends to take 65,749% of Investbank shares (Odessa). The National commission on securities and the stock market (NCSSM) financial institution in the system of the information disclosure provided information about it. Particularly, Eschner intends to take 45 550 625 bank shares with the nominal value of 58,3 million […]Next
In the first quarter of 2021, Ukraine will pay the debt of 146.1 billion hryvnias, which is 7.25 billion more than the previous forecast. The data on the website of the Ministry of Finance testify to this. At the same time, peak periods of public debt payments are expected in the second and third quarters. […]Next
On April, 16-18 in Kyiv will be held the main business event of region in solar energy field devoted to latest technology, trends and investments opportunities – CISOLAR 2019, 8th International Solar Energy Conference and Trade Show of Central and Eastern Europe. Today solar energy development is one of priority areas for investors in the […]Next
The number of confirmed COVID-19 cases in the United States continues to rise, but disease mortality rate is declining. This was announced on Sunday, July 6, by US President Donald Trump in his Twitter. “New China Virus Cases up (because of massive testing), deaths are down, “low and steady”. The Fake News Media should report […]Next
On Monday, PepsiCo announced its second fiscal quarter which ended on June 30. The results exceeded Wall Street expectations but were mixed. On the one hand, sales of food and snacks increased as consumers bought snacks for breakfast and home-made goods. On the other hand, sales of beverages decreased because large sales channels such as […]Next
Big changes are planned in the US Gannett company which decided to coordinate the work of their local and national brands in a new group called USA TODAY NETWORK. On Thursday, December 3, 2015 American media company Gannett announced the merger of its brands in the USA TODAY NETWORK group to improve the quality of […]Next
NPJSC Ukrtransgaz, Engie and its Enegie Energy Management Ukraine subsidiary company have concluded the contracts on natural gas transportation and storage. NPJSC Ukrtransgaz is reported about it.The agreement conclusion has taken place in Paris during Ukrainian and French economy forum . Igor Prokopiv, the President of NPJSC Ukrtransgaz admitted that they were ready to perform […]Next
According to the results of last year, Ukrzaliznytsia received a net loss of UAH 11.9 billion against a profit of UAH 2.988 billion a year earlier. This is stated in the company’s financial report. The company states that the financial result was significantly affected by a decrease in revenues from freight and passenger traffic – […]Next
Russia’s pipelayer Fortuna has resumed work on laying the Nord Stream-2 gas pipeline in Germany’s exclusive economic zone, DPA reported, citing the press service of the Nord Stream 2 AG project operator on May 23. “Fortune is currently operating in German waters in accordance with existing permits and with statements made by the authorities,” the […]Next