Tuesday, December 20, 2022

Uber India's Losses Decline 35% in Fiscal Year 2022

Uber India's Losses Decline 35% in Year 2022

Uber India Latest Business News

Uber India's ride-hailing business saw decent growth in FY22, with its collection from the vertical reaching Rs 388 crore. However, the company's revenue for providing support services to group companies decreased by 87.7% to Rs 8.72 crore during the same period. Uber India's operating income was mainly derived from its ride-hailing biz, which grew 29.5% to Rs 388.23 crore in FY22 from Rs 299.7 crore in FY21. The local entity also earned non-operating income and interest on current investments of Rs 163.6 crore, taking its total revenue to Rs 560 crore.


On the expense side, Uber India booked 51% of its expenditure as the cost of materials consumed. Employee advertising cum promotional expenses and benefits declined 63.6% and 44.1%, respectively, to Rs 44 crore and Rs 151 crore during FY22. On the other hand, legal cum professional fees spiked 71.7% to Rs 28.84 crore in FY22 from Rs 16.8 crore in FY21. Uber also incurred Rs 36.28 crore in rent and utility costs. As a result, Uber India's annual expenditure declined 13.4% to Rs 853 crore in FY22 compared to Rs 985 crore in FY21. With controlled expenses, the company cut down its losses by 35.3% to Rs 216 crore last year.


The numbers for Uber India are shockingly unimpressive for the year concluding 2021, as evidenced by its EBITDA margin and return on capital employed (ROCE), which declined to -44.77% and -16.95%, respectively. This sharp decrease could be attributed to lowered employee benefits and promotional expenses on a unit level, as it took, on average, Rs 2.15 to generate a single rupee in operating revenue. 


Despite the growth in FY22, Uber India has failed to deliver on its promise of making personal vehicle ownership redundant. Its driver 'partners' and users seem unhappy with the services, and without a drastic change in approach, the suspicion remains high that the end of the road is never too far away for Uber India. Ultimately, Uber India will have to make significant changes to its approach to remain viable in the long run.

You may also like: Dailyhunt's Parent Company Has Reported a Loss of Rs 2,500 Cr and a Revenue of Rs 965 Cr for the FY22


About Uber 


Uber is a global technology company and platform that has revolutionized how people move. Uber offers a more efficient, reliable, and affordable way to travel than using traditional methods of transportation. Uber provides the convenience of ordering transportation from anywhere using a smartphone app. With just a few taps, users can order a ride from a driver who can take them to their destination safely and reliably. To date, Uber has provided billions of rides to millions of people in countries across the world, providing jobs to drivers and an efficient transportation option to many communities. In addition, Uber offers many other services, such as food delivery and boat and bike rentals. Uber has transformed the industry and changed the way people travel forever.


About Entrackr


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