Uber sees dip in business due to lockdowns

As India went into lockdowns amid the lethal second Covid-19 wave in the April-June period, ride-hailing major Uber saw a dip in its business, as mobility gross bookings went down significantly.

Overall, Uber's gross bookings reached $21.9 billion in the second quarter, up 114 per cent compared to the year-ago period, the company said in a statement late on Wednesday.

The company recorded Mobility Gross Bookings of $8.6 billion and Delivery Gross Bookings of $12.9 billion. Net income was $1.1 billion, including $272 million in stock-based compensation expenses, the company announced.

"APAC was a mixed bag with New Zealand, Hong Kong and Japan growing versus July 2019, but India, Australia and Taiwan impacted by ongoing or new lockdowns," said Nelson Chai, Chief Financial Officer at Uber, during the earnings call.

Several Indian states enforced lockdowns in the April-June period as a deadly Covid wave hit the country. Some states later relaxed the guidelines while others extended the lockdowns.

According to Uber CEO Dara Khosrowshahi, the good news is that drivers increasingly want to get back on the road.

"In June, 60 per cent of inactive drivers told us they intend to start driving again within a month; that's up from 40 per cent in April. And 90 per cent of drivers told us they expect to come back by September," he said.

Khosrowshahi said that the company expects its growing 'New Verticals' business to increasingly benefit from, and contribute to its platform.

"Already, over 3 million consumers are ordering groceries, convenience items, alcohol and more on Uber's apps each month, and this is before we've even fully addressed the US opportunity," he informed.