Uber India Cuts Losses by 71% Despite Revenue Surge Exceeding Rs 3,700 Crore

Uber India has cut its losses by a whopping 71% even as its revenue jumped past the Rs 3,700 crore mark in the last financial year.

The ride-hailing company's financial statements show that despite facing stiff competition in the Indian mobility market, it boosted its operating revenue to Rs 3,762 crore in FY24, up from Rs 2,666 crore in FY23.

Money from Uber's taxi services made up just over a fifth of its total operating income, growing to Rs 807 crore from Rs 679 crore the year before. Most of the cash came from services provided to its parent company, Uber BV, including engineering support and back-office operations.

The company earned an additional Rs 99 crore from investments and other sources, bringing its total revenue to Rs 3,860 crore, up from Rs 2,744 crore in FY23.

Staff costs accounted for 67.6% of Uber India's budget. The company spent Rs 2,690 crore on employee benefits, a 29.4% increase from the previous year. Consumables cost the firm Rs 657 crore.

Legal fees, advertising, rent, repairs, safety measures, and other costs drove total spending up 26.4% to Rs 3,977 crore.

Despite the higher expenses, Uber India managed to shrink its losses to Rs 89 crore, down from Rs 311 crore in FY23. For every rupee earned, the company spent Rs 1.06.

Uber now looks more like a software company with thin margins, with its taxi business continuing to drag down profits. Industry watchers say the company may finally be on the verge of profitability, especially if rumors about buying Blusmart Mobility pan out.

Many find it puzzling that Uber still can't turn a profit after a dozen years in India despite its massive presence in cities across the country. The company has relied on selling software services to its parent to cover up struggles in its core business but has failed to win much customer sympathy.

As Uber hits its 12-year milestone in India, industry experts hope for a breakthrough to improve its financial performance and repair its image in the cutthroat ride-sharing market.