Uber (NYSE: UBER) stock price plunged more than 4% after rallying close to 14% in the last five trading sessions. The shares of the ride-hailing giant are in a positive territory year to date despite the massive selloff early this year.
The second-quarter revenue of the ride-sharing company plunged 29% to $2.2bn. The stronger than expected results from the food delivery business helped in offsetting the sharp drop in rides revenue during the second quarter.
Uber chief executive Dara Khosrowshahi said food delivery has generated more revenue than rides.
“While we would have all hoped that by now we would have a clear line of sight to the end of the pandemic, hope is not a strategy,” he said. “The bottom line is we have taken swift action on everything that’s within our control.”
It’s delivery gross bookings soared almost 113% year-over-year in the second quarter and delivery revenue surged 103%. The delivery adjusted EBITDA loss lowered to $232 million. This represents an improvement of $81 million from the previous quarter and $54 million year-over-year.
The company has been aggressively working on measures to expand its delivery business worldwide. It recently bought US restaurant delivery start-up Postmates that will offer access to 30% of the American market.
The ride-hailing giant has generated a net loss of $1.8bn. The big loss and virus-related restrictions has also negatively impacted its cash generation potential. The company has generated $8.1 billion in cash and equivalents compared to $13.7 billion in a year-ago period.
Uber stock price is up 16% year to date as traders believe the ride-sharing company would see a strong recovery during the third quarter. Uber stock price is currently trading below the 52-weeks high of $45 a share. The shares are also down 16% in the last twelve months.