Uber Q3 mobility unit recovers to 2019 levels, driver supply improves

Uber wrote down a $3.2 billion unrealized loss in Didi and revalued Zomato, Aurora and Joby stakes.

Uber's gross bookings for its mobility services have rebounded to pre-COVID-19 levels in the third quarter and the company said the supply of drivers has improved. With any luck additional drivers will mean Uber ride prices will fall.

The company's third quarter highlighted strong growth across its mobility, delivery and freight businesses. However, Uber reported a third quarter net loss of $2.4 billion due to write-downs from equity investments. Uber wrote down a $3.2 billion unrealized loss in Didi and revalued Zomato, Aurora and Joby stakes.

Uber's revenue for the third quarter was $4.8 billion, up 72% from a year ago, and ahead of the $4.42 billion Wall Street estimate. Dara Khosrowshahi, CEO of Uber, said the company's restructuring decisions in 2020 set the firm up for growth as rides rebound.

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By unit:

  • Mobility revenue for the third quarter was $2.2 billion, up 62% from a year ago.
  • Delivery revenue was $2.24 billion, up 97% from a year ago.
  • Freight revenue was $402 million, up 40% from a year ago.

On an adjusted EBITDA basis, Uber's mobility unit returned $544 million with the delivery business near breakeven.

Other items:

  • US airport trips have grown more than 20% since the beginning of September.
  • Uber has added nearly 640,000 active drivers and couriers since January.
  • Mobility margins have rebounded to 2019 highs.