Begin typing your search...

Uber lost $707 mn in Zomato investment this year

The company’s stock surged 15% to $28.2 and helped push shares of Lyft Inc by 11% and DoorDash by 4%.

Uber lost $707 mn in Zomato investment this year
X
Representative image

NEW DELHI: Uber Technologies Inc reported positive quarterly cash flow for the first time ever on Tuesday and forecast third-quarter operating profit above estimates, as more people rely on its services for transport and ordering in food.

The company’s stock surged 15% to $28.2 and helped push shares of Lyft Inc by 11% and DoorDash by 4%.

Uber generated free cash flow of $382 million in the second quarter, topping analysts’ expectations of $263.2 million, as trips exceeded levels seen before the pandemic, boosted by office reopenings and a surge in travel demand.

The company also added more drivers and delivery agents to its fleet in the quarter, taking their total number to an all-time high of about 5 million and allaying concerns that soaring gas prices were deterring them from signing up.

“We have a very strong flow of new drivers who are signing up, coming on to earn,” CEO Dara Khosrowshahi said, adding that more than 70% of new drivers opted to join Uber to manage a hit from inflation and rising costs of living.

At its delivery business, which includes Uber Eats, growth slowed from the prior quarter but the company expects ordering in to become a habit for consumers. Revenue from Uber’s delivery segment rose 37% to $2.69 billion, while that of ride-share business surged 120% to $3.55 billion in the quarter ended June 30, both surpassing Wall Street expectations.

The ride-hailing major revealed it lost about $245 mn in its Zomato investment in the Q2 this year, along with a total of $707 mn loss in the first six months of 2022. Uber had sold Uber Eats in 2020 in an all-stock transaction to Zomato for a 9.99 pc stake in the online food delivery platform, and currently holds 7.78 per cent in the Deepinder Goyal-run company. As per reports, Uber is now likely to sell its 7.8 per cent stake in Zomato for around Rs 2,938 crore ($373 million).

The offer is expected to come with a price range of Rs 48-54 per share, equivalent to 612 million or 7.8 per cent of total outstanding shares.

As of June 30, Uber owned 612 million (61.12 crore) shares of Zomato.

The ride-hailing major revealed it lost about $245 mn in its Zomato investment in the Q2 this year, along with a total of $707 mn loss in the first six months of 2022

Visit news.dtnext.in to explore our interactive epaper!

Download the DT Next app for more exciting features!

Click here for iOS

Click here for Android

DTNEXT Bureau
Next Story