By Yasin Ebrahim
Investing.com - Uber (NYSE:UBER) reported bigger-than-expected losses in the first quarter of the year after suffering writedowns of $2.1 billion in overseas investments after the coronavirus pandemic brought ride-sharing activity to a halt.
Uber was down 4% following the report.
Uber reported a loss of $1.70 a share, missing estimates for a loss of 90 cents a share, but revenue of $3.54 billion topped estimates.
The weaker results come as Covid-19 pandemic dented growth in its ride-sharing business but underpinned a jump in activity in its faster-growth business, UBER Eats.
“While our Rides business has been hit hard by the ongoing pandemic, we have taken quick action to preserve the strength of our balance sheet, focus additional resources on Uber Eats, and prepare us for any recovery scenario,” said Dara Khosrowshahi, CEO. “Along with the surge in food delivery, we are encouraged by the early signs we are seeing in markets that are beginning to open back up."
Gross bookings, a measure of total value of rides before driver costs and other expenses, rose 15% to $15.8 billion from a year ago, with Eats growing 54% year over year.
The company grew monthly active consumers 11% to 103 million in the quarter.