San Francisco - Even as
Uber’s investors mounted a revolt against the
then-chief executive officer over a string of self-inflicted scandals,
the ride-hailing company’s financial performance continued to improve in
the second quarter of the year, based on financial results provided by
Uber generated $1.75bn in adjusted net revenue in the second
quarter of this year, up 17% from the prior quarter. Uber
narrowed losses by 9% to $645m.
Travis Kalanick, Uber’s co-founder, resigned as CEO on June 20, only
several days before the end of the second quarter.
READ: Uber CEO resigns from ride-sharing startup
The results show that
Uber continued to make progress on narrowing its losses while growing
its business, even as the company responded to a relentless cascade of
Kalanick stepped down after a group of investors led by venture
capital firm Benchmark demanded his resignation. He has since tried to
hang on to the three board seats he controls even as Benchmark
sues him for fraud. Other investors have signalled concerns as well.
Multiple mutual funds backing Uber recently
marked down the value of their stock by as much as 15%.
READ: Uber's Kalanick calls Benchmark lawsuit a 'fabrication'
Uber’s many crises have emboldened the company’s competitors. China’s
Didi Chuxing raised $5bn this year, while
Lyft has attempted to seize on Uber’s many stumbles, donating $1m to the American Civil Liberties Union after Uber was criticiSed
for its ties to the Trump administration, for instance.
An executive committee is steering Uber as it searches for a CEO. The
group has been taking steps to fend off rivals and rehabilitate the
company’s image. It bent to mounting pressure from drivers in June by
adding the option for customers to
tip within the app. Uber said it has paid out more than $50m in
gratuity since then.
Among Uber’s biggest costs: India, Southeast Asia, discounts for
passengers and bonuses for drivers, insurance payments, employee
salaries and self-driving car research. Uber doesn’t include the cost of
stock-based compensation in its losses.
At the end of the second quarter, Uber had $6.6bn cash on hand.
The company’s gross bookings, the total money taken in fares, reached
$8.7bn, an increase of 17% from the prior quarter.
Uber, which remains a private company, has been doling out its
financial results to news outlets every quarter after years of periodic
leaks. Internet media startup Axios first reported this quarter’s
financials on Wednesday.
Uber has been searching for a chief financial officer. Its head of
Gautam Gupta, left Uber this year for the startup OpenDoor. He was
replaced temporarily by Prabir Adarkar, whose promotion to vice
president was announced to the company on Tuesday.
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