New Delhi: Ride-hailing app Uber has said it will continue to invest in Uber Eats, and electric bikes and scooters businesses as well as in high-potential markets like India and the Middle East, even though its losses mounted to over $1 billion in the September quarter.
The US-based company registered $1.07 billion in losses in the quarter ended September, up from $891 million in the previous quarter. Its sales grew by about five per cent to $2.95 billion for the said quarter from the previous quarter.
“We had another strong quarter for a business of our size and global scope. As we look ahead to an IPO and beyond, we are investing in future growth across our platform, including in food, freight, electric bikes and scooters, and high-potential markets in India and the Middle East where we continue to solidify our leadership position,” CFO, Uber, Nelson Chai said.
The company said it is on track for its initial public offering next year. Gross bookings from Uber Eats grew more than 150 per cent year-on-year to $2.1 billion (excluding Southeast Asia and Russia).
The company said its core business (rides, eats and freight) was contribution margin positive for the fourth quarter in a row, despite continued global competition.
Drivers to earn more
Uber India has claimed that its fuel price-linked fare mechanism will increase gross earnings of its drivers by Re 1 per km, which on a monthly basis will lead to a net additional earning of up to Rs 2,200 for an eight-hours driving.
The announcement claim a day after it assured its driver partners that their net earnings won’t be impacted due to rising fuel prices as it would be rolling out a national fuel price index to ensure that their earnings are correlated with changes in the fuel prices.
The announcement came days before the strike threat on 18 and 19 November that the drivers had given to the management after their 12-day strike last month.
Given the impact of rising fuel prices to their net earnings, Uber drivers have demanded a fuel-price linked fare mechanism which the company has agreed to, Uber said in a statement .
“The mechanism is first being rolled out in Mumbai and we estimate it will increase gross earnings of driver partners by Re 1 a km. Those who drive around 8-hours a day, this is estimated to translate into a net earnings increase of Rs 2,000-2,200 a month,” Uber claimed in the statement.
Uber is also working towards providing drivers access to health and life insurance and micro-loans and a host of other benefits aimed at improving their welfare, it had said. Since the beginning of the year, fuel prices have risen sharply amidst a global surge and a free-falling rupee.