Uber sees driver costs rise as the US economy recovers.
Uber Technologies Inc (Uber.N) has signaled it will pay more drivers to bring cars back on the slotxo road as the U.S. economy recovers from the epidemic and disclosed $ 600 million to benefit drivers in United. Kingdom, a sign of the potential charges if The United States needs more driver compensation.Uber's shares were down 4.6 percent in after-hours trading.The stock fell 3.4 percent at regular intervals after Biden's administration blocked Trump-era rules affecting gig workers. Read more about studying in Pakistan The costs and speed of the business's turnaround are of great interest to investors, and Uber executives on Wednesday said the share rate at Uber takes its fees on each ride was lower from the previous quarter. Up to 20%, reducing the proportion will help Uber drivers earn more. But it's focused on Uber's revenue and profitability in the second quarter.
Atlantic Equities analyst James Cordwell said the stock fell after hours due to pressure on the take-up rate and tacit incentives.The food delivery business continued to grow in the first quarter. However, bus reservations remained stable from the previous quarter.What's more, the bus travel business has to absorb $ 600 million worth of settlements with more than 70,000 UK drivers and more benefits. Read more about studying in Pakistan The company's profits have been hit by a ruling in the United Kingdom, which raised costs and warned investors that similar moves in the US could have a much bigger impact," said senior analyst Haris Anwar. of Investing.com said.Uber posted an adjusted first-quarter loss of $ 359 million before interest, taxes, depreciation and amortization, a metric that excludes one-off costs, as well as stock-based compensation, which cuts losses almost. $ 100 million from the previous quarter.
Analysts on average expect the company to report an adjusted loss of EBITDA of about $ 452 million, Refinitiv data showed.Uber promised profit on that metric by the end of the year, three months after smaller rival Lyft Inc (Lyft.PA), which on Tuesday said it would continue to report adjusted profits starting in the quarter. three Read more about studying in PakistanUber Chief Financial Officer Nelson Chai said on Wednesday the company would profit in "the second half of the year", opening the door to third-quarter profitability.Revenue from Uber's delivery segment, which includes the Uber Eats restaurant delivery business, is more than tripled from last year and is up 28 percent from last quarter to $ 1.7 billion.Uber's ride bookings, which fell over the past year as the outbreak of the disease, remained flat from the previous quarter and fell 38 percent from the previous year.
Uber's first-quarter results came as the company reported food delivery and bus reservations in March and April as U.S. vaccination rates rose and warmer temperatures.Both Uber and Lyft have struggled to deliver a rebound of bus travel in the spring when consumer demand surpassed temporary driver supply, leading to higher prices and longer wait times. Up in some US citiesUber in April said it would invest an additional $ 250 million to boost drivers' income and offer incentivizing payment guarantees for new and existing drivers. Read more: These costs will drag even further down on the second-quarter move. Excluding expenses of $ 600 million, Uber reported first-quarter revenue of $ 3.5 billion, ahead of an average analyst estimate of $ 3.29 billion, according to Refinitiv data.