Uber posts $509 million adjusted loss on driver incentives even as trips rise

Uber Technologies Inc on Wednesday reported widening losses as it spent more to entice drivers to return to its platform, sending shares of the ride-hail and food delivery company down in after-hours trade.

Investors sold the shares despite Uber management’s assurances that the company can deliver a sharp turnaround in profitability even as New York and other major cities reimpose some pandemic restrictions.

Uber posted an adjusted $509 million second-quarter loss before interest, taxes, depreciation and amortization – a metric that excludes one-time costs, including stock-based compensation – widening losses by nearly $150 million from the first quarter.

Analysts on average had expected the company to report an adjusted EBITDA loss of around $324.5 million, Refinitiv data showed.