Uber improves second quarter growth continues generate losses: spending on incentives to drivers slows results and shares fall close to 5% - Uber closes the first half of 2021 with profits of 1,036 million dollars, about 875 million euros according to the current exchange rate. In this way the transport company has reversed the difficult situation in which it was in the same period last year, marked by the red numbers and losses of 4,711 million euros at the worst time of the pandemic, when restrictions on mobility worldwide multiplied.
The sale of his business in China to Didi, as well as the sale of his autonomous car division to Aurora, has brought him extraordinary revenues of 1,614 million euros altogether, which has had a strong impact on the accounts.
In fact, these operations somehow 'make up' the company's accounts, since the ebitda (the result before interest, taxes, depreciation and amortization that measures the health of the business itself of a company) has resulted in losses of 509 million dollars (about 430 million euros) mainly due to the incentives it has allocated to its drivers. Uber also posted negative ebitda last year, with losses exceeding 700 million euros.
Uber improves second quarter growth continues generate losses
The value of the company's shares fell drastically after the results were known, at the close of the market yesterday, to 38 dollars per title, in a crash that approached 9%, but that softened in part hours later until hovering a fall of 5% leaving the share approaching 40 dollars.
Operating income for the period between April and June is 3,319 million euros, 105% more than in the same quarter of the previous year, when accounts were heavily affected by the pandemic and mobility restrictions around the world. The figures for the second quarter point to the recovery path with a total of 1,511 million trips, which also represents an increase of 105% year-on-year.
Uber improves second quarter growth continues generate losses
"We expect our losses at adjusted ebitda level in the third quarter to improve to stay below $ 100 million," explained the company's CFO, Nelson Chai, in a letter to investors in which he anticipated a record gross reserves of between $ 22,000 and $ 24,000 million.
As noted above, the main cause of these losses at the level of ebitda is due to increased incentives for the company's deliverers and drivers. During the pandemic, many drivers stopped operating due to low demand for travel. Now, in this second quarter the demand has increased considerably, but there were not enough drivers to cover those trips, as explained by the company.
Uber improves second quarter growth continues generate losses
In the United States, where this shortage of drivers has been especially noted, Uber launched a $ 250 million (€211 million) incentive program to improve the income of both drivers already working on the platform and new drivers.
” In the second quarter we have invested in the recovery by investing in drivers and we have made strong progress, with a monthly increase in active drivers and delivery people in the United States of almost 420,000 between February and July, " Uber CEO Dara Khosrowshahi said in a statement.
In this sense, the distribution of food, that Uber carries out under its affiliate Uber Eats, It is the area that has brought more revenue in this quarter of 2021, with a 1.658 million euros. It is followed closely by passenger transport, which has generated revenues of 1,366 million euros. Both sectors have doubled their performance compared to the same period last year.
However, the food delivery area (delivery) continues to report losses with respect to gross operating income (ebitda) and represent a negative value of 136 million euros.
Uber improves second quarter growth continues generate losses
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Social Security issues important notice for parents with children over the age of 26
If you have a child who has just turned 26 or is over this age, you should pay attention to a Social Security notice that is of great interest.
In the event that you have children who have already reached the age of 26 you should know that they can not continue to be beneficiaries of your Social Security. "To be a beneficiary, the child must be in the care of the father/mother and be under 26 years of age," the agency explains.
This warning should not go unnoticed, as it refers to access to services such as public health. Children under the age of 26 who are in charge of their parents do so as beneficiaries, but from that age the regulations change and they can no longer make use of the ownership of their parents.
This means that from the age of 26, if you are in this situation, it is necessary to make a small procedure to continue accessing Social Security services, for example, a public hospital. The person concerned will have to apply for access to Social Security as a holder, rather than as a beneficiary, and this is the case even if he or she has not yet started making contributions.
The only essential requirements to be a holder of Social Security are to have Spanish nationality and reside in Spanish territory.
You can do this through the electronic office of the Social Security, identifying yourself with the Cl @ ve system or digital certificate. You can also make an appointment at a Social Security Information Center (CAISS) to complete the process there.
Once this procedure is completed, it will be necessary to apply for a new health card. Another Social Security number and a letter T will appear in this document, which indicates that this person is already a holder.