Uber India losses to hit almost 4,000 crore rupees!

According to a media report, Uber India is projected to post revenue of Rs. 339 crore for its ride-hailing service and a negative of Rs. 762.5 crore for its food delivery service for the five month period between August and December 2019. During the same period, the operating loss is projected to be Rs. 2,197 crore for its food delivery business and 1,645 crore for the rides business, bringing the total to Rs. 3,842 crore.

The report suggests that the negative revenues maybe because the commission revenues are lower than the cost of delivery, high refunds to consumers and Uber paying restaurants which don’t give discounts. Uber claims that India is a market where they are funding the eater, the courier as well as the restaurant in terms of building the business.

Globally, Uber’s quarterly results show marginal gain in bookings and monthly active users. Uber beat its quarterly revenue and loss estimates and improved its annual loss forecast. The ride-hailing service is looking to turn a profit by 2021. The company posted an adjusted loss of US$ 585 million, while analysts’ estimates were US$ 808 million. Shares also fell 5% after the results.

The company is looking to reduce spending, cut around 1,200 jobs, reduce rider discounts and driver incentives and could also exit from a few markets. More services like bikes, scooters, helicopters, public transportation, as well as food and grocery delivery could help Uber post a profit.

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