Ride-hailing giant Uber’s India arm saw its net loss widen over 58% to INR 311.3 Cr in the financial year 2022-23 (FY23) from INR 196.7 Cr in the previous fiscal, hurt by the rising expenses.
Meanwhile, the company’s loss before tax was higher, at INR 401.6 Cr, in FY23. Its net loss reduced due to deferred tax.
Uber’s bottom line took a hit despite a 54.4% rise in its operating revenue to INR 2,666.1 Cr during the year under review from INR 1,726.5 Cr in FY22, as per its filings accessed from business intelligence platform Tofler.
The company earns a majority of its revenue from support services, which stood at INR 1,977.4 Cr in FY23 as against INR 1,296.4 Cr in the prior year. Revenue from rides increased over 74% to INR 678.6 Cr in the reported period from INR 388.3 Cr in FY22.
However, the contribution of revenue from support services to the company’s overall revenue declined slightly to 74.2% in FY23, while the contribution of revenue from rides increased to 25.4% in the year from 22.5% in FY22.
Meanwhile, income from infrastructural facilities and services declined almost 76% year-on-year (YoY) to INR 10.1 Cr in FY23.
Including interest income, brand licence fees, liabilities written back, and miscellaneous income, Uber’s total revenue increased 46.3% YoY to INR 2,744.1 Cr in the year.
It is pertinent to note that the US-based ride-hailing giant has been under intense scrutiny in India and has found itself in multiple legal troubles in the past few years. Reports also emerged in 2022 suggesting a possible exit of Uber from India, with Ola acquiring the business. However, both the companies dismissed the reports.
Meanwhile, Pradeep Parameswaran, regional general manager for Asia-Pacific at Uber, told an Indian publication in FY23 that the India business was on track to soon achieve profitability. However, he didn’t provide a timeline for it.
He also said that Uber was looking at India as a long-term investment while expanding the modes of transport and improving the service quality.
Where Did Uber Spend In FY23?
Uber’s total expenditure in India jumped 46.6% to INR 3,145.8 Cr in FY23 from INR 2,145.8 Cr in the previous year, with employee costs contributing the largest portion to it.
Employee Benefit Expenses: Total employee cost jumped over 56% to INR 2,078.5 Cr during the year under review from INR 1,329.1 Cr in FY22. In that, the company spent INR 1,219 Cr towards salaries and wages.
Uber’s ESOP cost also surged 63% YoY to INR 668.2 Cr in FY23.
Cost of Materials Consumed: Uber’s spending in this bucket increased 26.7% to INR 507.5 Cr in FY23 from INR 400.4 Cr the previous year.
Contract Cost: The company also spent INR 127.8 Cr on on-site labour supervision cost contracts in FY23, a jump of 51% YoY.
Legal Professional Charges: Amid various ongoing legal troubles for the company, its legal professional charges increased over 62% YoY to INR 50.8 Cr in FY23.
Depreciation, Depletion and Amortisation Expense: Uber’s spending in this bucket reduced slightly by 5.6% YoY to INR 102.4 Cr in FY23.
Advertising Promotional Expenses: Uber’s ad expenses continued to grow, as it spent INR 92.1 Cr in the bucket in FY23 as against INR 44.8 Cr a year ago.
In September last year, Uber told an Indian publication that the country would emerge as its largest market globally in the next decade as the company moves its focus towards two-wheelers and three-wheelers.
Last year, Uber also launched its electric taxis branded as ‘Uber Green’.
On the other hand, the company also rolled out a rewards programme for cab drivers in the country, called Uber Pro, recently to bring down ride cancellations.
The post Uber India’s Operating Revenue Surpasses INR 2K Cr Mark In FY23, Loss Jumps To INR 311 Cr appeared first on Inc42 Media.
