Uber shared its first-quarter results for the year 2020 today, and things don’t look good for its ride-hailing business. The company posted a staggering net loss of $2.9 billion, out of which write-downs accounted for $2.1 billion while $277 million came in the form of stock-based compensation expense.
CEO Dara Khosrowshahi noted that the company’s ride business has been “hit hard by the ongoing pandemic,” which is not too surprising given the nature of Uber’s business. Overall, the company posted net revenue of $3.5 billion, which amounts to a 14% increase on a yearly basis. However, Uber Eats emerged as the silver lining.
Gross bookings for Uber Eats went up by 54% in Q1 2020. Encouraged by the positive results, Khosrowshahi mentioned that the company is focusing additional resources on Uber Eats to stage a recovery. The growth of Uber Eats is not surprising, thanks to the surge in people placing orders online as restaurants are shut down on a large scale worldwide.