Uber Revenue Climbs as Freight Growth Offsets Mobility Weakness
(MENAFN) Uber reported a 10% increase in third-quarter revenue, reaching $14.77 billion compared with the same period last year, as stronger performance in freight and delivery operations compensated for weaker ride-hailing revenue, according to the company's financial results released Wednesday.
The company's overall revenue surpassed market expectations. Freight revenue recorded a particularly strong performance, climbing 34% to $1.76 billion and exceeding forecasts. However, both ride-hailing and delivery operations fell short of analysts' projections.
Revenue from Uber's Mobility division, which covers ride-hailing services, declined 2% to $7.52 billion. This came despite a 16% increase in completed trips and a 17% rise in the total value of Mobility bookings.
Uber explained that adjustments to its UK operating model affected the reported figures. Under the revised accounting approach, payments made to drivers are deducted directly from revenue instead of being classified as expenses, resulting in a $1.1 billion reduction in reported revenue during the quarter.
“Elevated fuel prices and tighter driver availability weighed on supply growth in several international markets,” CEO Dara Khosrowshahi said while discussing the company's results.
He added that Mobility's expansion rate was 1 to 2 percentage points below internal projections, although business conditions showed signs of improvement in October.
Meanwhile, revenue from Uber's Delivery division increased 23% to $5.49 billion. The company's overall gross bookings also advanced 20% to $59.82 billion, while monthly active consumers across its platform grew 14% to reach 215 million.
Despite the increase in revenue and platform activity, net income attributable to Uber dropped 92% to $512 million, compared with $6.6 billion in the corresponding quarter last year. The earlier period included a $4.9 billion tax benefit, contributing to the substantial year-on-year difference.
The company's overall revenue surpassed market expectations. Freight revenue recorded a particularly strong performance, climbing 34% to $1.76 billion and exceeding forecasts. However, both ride-hailing and delivery operations fell short of analysts' projections.
Revenue from Uber's Mobility division, which covers ride-hailing services, declined 2% to $7.52 billion. This came despite a 16% increase in completed trips and a 17% rise in the total value of Mobility bookings.
Uber explained that adjustments to its UK operating model affected the reported figures. Under the revised accounting approach, payments made to drivers are deducted directly from revenue instead of being classified as expenses, resulting in a $1.1 billion reduction in reported revenue during the quarter.
“Elevated fuel prices and tighter driver availability weighed on supply growth in several international markets,” CEO Dara Khosrowshahi said while discussing the company's results.
He added that Mobility's expansion rate was 1 to 2 percentage points below internal projections, although business conditions showed signs of improvement in October.
Meanwhile, revenue from Uber's Delivery division increased 23% to $5.49 billion. The company's overall gross bookings also advanced 20% to $59.82 billion, while monthly active consumers across its platform grew 14% to reach 215 million.
Despite the increase in revenue and platform activity, net income attributable to Uber dropped 92% to $512 million, compared with $6.6 billion in the corresponding quarter last year. The earlier period included a $4.9 billion tax benefit, contributing to the substantial year-on-year difference.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment