Uber on Tuesday reported better-than-expected second-quarter earnings, fueled by strong demand for the San Francisco-based company’s ride-hailing and food delivery services.
Revenue more than doubled to $8.1 billion in the three months ended June — an increase of 105 percent. Though it still posted a $2.6 billion net loss, investors reacted positively, with shares up more than 12 percent in premarket trading to $27.58.
The company generated $1.8 billion in revenue from its cargo business. It also said the increase in sales was partly explained by a change in accounting for its ride in the UK.
Uber saw year-over-year gains in monthly active platform users, gross bookings, and trips due to higher demand but also a higher number of drivers for its signature ride-hailing service and food delivery operation.
Uber CEO Dara Khosrowshahi said both consumers and earners are at “all-time highs.”
“Over the past quarter, I challenged our team to deliver on our profitability commitments even faster than planned – and they delivered,” Khosrowshahi said in a statement.
Uber primarily attributed its loss to the falling value of its investments in financially troubled companies such as Singapore’s VTC Grab, US self-driving vehicle startup Aurora and Indian grocery delivery service Zomato.
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