How Uber plans to rebound from massive Q2 losses stemming from driver incentives

 

Uber’s second-quarter earnings revealed greater than expected losses, in large part due to the company’s massive $250 million stimulus package launched in April to incentivize drivers back onto the app after a pandemic-induced shortage.

The company reported a loss of $509 million before EBITDA. For comparison, Lyft reported a positive adjusted EBITDA in the quarter at $23.8 million the day before. Uber’s losses point to a larger problem facing the app-based ride-hailing industry: The triple threat of lagging driver supply, the cost of attracting them, and the COVID-19 delta variant looming in the periphery.

“Drivers increasingly want to get back on the road,” said CEO Dara Khosrowshahi during

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