Uber experts say 2 key numbers reveal impact of COVID-19 on company - Business Insider

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Uber's business got slammed by COVID-19. Two key data points show just how ugly things have gotten.

Uber's gross bookings for its mobility business declined 73% in the second quarter, compared to the same period last year. That number speaks to the magnitude of the challenge Uber has faced during a global pandemic that has made some potential customers fearful of using a ride-hailing service and reduced the need for commuting and business travel, said Dan Ives, a managing director of equity research at Wedbush Securities.

"That number just illustrates, as a data point, just how dark this COVID storm is for a company caught in the middle of it," he said.On an adjusted basis, Uber lost $837 million before interest, taxes, depreciation, and amortization during the second quarter.

Overall profitability is important because it removes some of the questions investors might have about how Uber categorizes certain costs. For example, the EBITDA for Uber's mobility segment may fail to take into account some research-and-development costs that benefited the mobility business but were placed in a separate category on Uber's balance sheet, White said.Axel Springer, Insider Inc.'s parent company, is an investor in Uber.

 

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