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UberEats India Devours Firms Global Nos

Wednesday, November 6, 2019, 15:04 Hrs  [IST]
HBI Staff | Mumbai

According to The Economic Times, UberEats’ India business has dragged down the food delivery arm’s average net revenue by 0.4%, CFO Nelson Chai said on a conference call with analysts after Uber’s quarterly earnings. “Without India, it (ANR) would have been 11.1%. Now, it is 10.7%. So, India drag impact is 0.4%,” he said. Uber’s total revenue rose nearly 30% to USD 3.81 billion, while net loss widened to USD 1.16 billion in the quarter ended September 30, the company said in a statement. According to regulatory disclosures made in India, Uber has projected negative revenue of Rs 762.5 crore in its India food delivery business for the five months ending December 2019. Uber has projected that its food delivery business in India will be profitable by 2026, according to a valuation report prepared by KPMG affiliate BSR. Uber has projected higher operating losses of INR 2,197 crore in Uber Eats for the five month period — August to December 2019.

 This loss is also higher than what it forecast for the same period for its core ride hailing business, losses for which stood at INR 1,645 crore, according to the report. UberEats’ India business competes with larger rivals Zomato and Swiggy. In its last quarter earnings call uber chief executive Dara Khosrowshahi said the food delivery market in India continued to be competitive, and admitted to being the number three player in the space, in a market dominated by Swiggy and Zo-mato Swiggy and Zomato also continue to aggressively burn close to USD 30- USD 40 million monthly on discounting, logistics and restaurant acquisitions. Yet, there is no clear market leader in the space. Uber’s food ordering business earns lower margins than its core ride-hailing business. ET had reported earlier that Uber has halved its annual cash allocation to its food-delivery business in India to $90-$120 million. 

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