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Why Aren’t Uber’s Ride Sharing Revenues Growing?

Uber’s (NYSE:UBER) net adjusted revenues for its ride-sharing operations have remained almost flat at about $2.3 billion over the last 5 quarters. Net adjusted revenues reflect the total financial activity generated by Uber’s platform, after taking into account all driver earnings. Ride sharing revenue as % of total revenue has also declined from 89% in Q2’17 to 81% in Q2’19. QoQ growth has slowed from 20% in Q3’17 to -1% in Q2’19. In this analysis, we take a look at some of the reasons for this.

View our interactive dashboard analysis Why Aren’t Uber’s Ride-Sharing Revenues Growing?

Breaking Down Uber’s Net Adjusted Ride Sharing Revenues

1. Uber’s Gross Bookings Have Been Trending Steadily Higher

  • Uber’s Gross Bookings for its ride-sharing business have increased steadily from around $7.5 billion in Q2 2017 to over $12 billion in Q2 2019, driven primarily by a growing customer base.
  • Gross bookings refer to the total amount billed to ride-sharing customers, including taxes, tolls, and fees.

2.Net Revenues Are Being Held Back By A Lower Take Rate

  • The stagnation in Uber’s net ride-sharing revenues is driven primarily by a lower take rate – which is the cut the company takes from the gross bookings.
  • The take rate has declined from about 23% in Q1 2018 to about 19% in Q2 2019.

Additional details about why Uber’s Take Rate is declining is available in our interactive dashboard.

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