Even as Uber Technologies Inc.’s investors mounted a revolt against the then-chief executive officer over a string of self-inflicted scandals, the ride-hailing company’s financial performance continued to improve in the second quarter of the year, based on financial results provided by the company.
Uber generated $1.75 billion in adjusted net revenue in the second quarter of this year, up 17 percent from the prior quarter. Uber narrowed losses by 9 percent to $645 million.
Travis Kalanick, Uber’s co-founder, resigned as CEO on June 20, only several days before the end of the second quarter. The results show that Uber continued to make progress on narrowing its losses while growing its business, even as the company responded to a relentless cascade of scandals.
Kalanick stepped down after a group of investors led by venture capital firm Benchmark demanded his resignation. He has since tried to hang on to the three board seats he controls even as Benchmark sues him for fraud. Other investors have signaled concerns as well. Multiple mutual funds backing Uber recently marked down the value of their stock by as much as 15 percent.
Uber’s many crises have emboldened the company’s competitors. China’s Didi Chuxing raised $5 billion this year, while Lyft Inc. has attempted to seize on Uber’s many stumbles, donating $1 million to the American Civil Liberties Union after Uber was criticized for its ties to the Trump administration, for instance.
An executive committee is steering Uber as it searches for a CEO. The group has been taking steps to fend off rivals and rehabilitate the company’s image. It bent to mounting pressure from drivers in June by adding the option for customers to tip within the app. Uber said it has paid out more than $50 million in gratuity since then.
Among Uber’s biggest costs: India, Southeast Asia, discounts for passengers and bonuses for drivers, insurance payments, employee salaries and self-driving car research. Uber doesn’t include the cost of stock-based compensation in its losses.
Sourced through Scoop.it from: www.bloomberg.com
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