Uber misplaced $2.9 billion within the first quarter as its abroad investments had been hammered by the Corona Virus pandemic, however the firm is trying to its rising meals supply business in addition to aggressive cost-cutting to ease the ache.
The ride-hailing big mentioned Thursday it’s offloading Jump, its bike and scooter business, to Lime, an organization by which it’s investing $85 million. Uber’s bike and scooter business had been shedding about $60 million 1 / 4.
“While our Rides business has been hit exhausting by the continued pandemic, now we have taken fast motion to protect the power of our steadiness sheet, focus extra assets on Uber Eats, and put together us for any restoration state of affairs,” mentioned CEO Dara Khosrowshahi in a press release. “Along with the surge in meals supply, we’re inspired by the early indicators we’re seeing in markets which might be starting to open again up.”
Uber introduced in $3.54 billion in income within the first quarter, up 14% from the identical time final 12 months.
Revenue in its Eats meal supply business grew 53% as prospects shuttered at house opted to order in. The firm exited markets the place its meals supply business was unprofitable, together with the Czech Republic, Egypt and Honduras. But it added key accounts together with Chipotle, Dunkin’ and Shake Shack, and it enabled supply from grocery and comfort shops.
Uber’s backside line was damage when the worth of its investments in Chinese ride-hailing big Didi, Singapore-based Grab and others plummeted by $2.1 billion as demand collapsed in these areas.
Uber’s funding in Lime got here as a part of a $170 million funding spherical, which additionally included Alphabet, Bain Capital Ventures, GV and different buyers.