Uber discloses net loss of $2.4 billion in Q3, but delivery business outperforms

Uber discloses its third-quarter earnings. In after-hours trading, shares rose 1% after a dip.

A drop in the value of Uber’s investment holdings, especially Didi, led to a net loss of $2.4 billion for the quarter. Some of those losses were offset by stakes in Zomato, Aurora, and Joby, according to the company. In the same quarter one year ago, Uber reported a net loss of $1.09 billion.

According to Uber, it also met the end-of-year target for adjusted EBITDA profit. A company’s EBITDA is earnings before interest, taxes, depreciation, and amortization. The car-hailing giant earned $8 million in adjusted EBITDA, up from a $500 million loss in Q2.

Although pandemic restrictions have eased in some places around the world, Uber Eats has continued to grow. Due to its delivery business, the company was able to withstand Covid’s headwinds during the pandemic when people began ordering from home more often.

The delivery business continues to outperform its core ride-hailing business with revenues of $2.24 billion, compared with $2.2 billion. However, the gap is narrowing.