New Delhi, March 19 (IANS) Ride-hailing major Uber India continued to struggle with profitability despite strong revenue growth, as rising expenses weighed heavily on its financial performance, its latest financials showed.
The company’s total expenditure surged by 26.4 per cent to Rs 3,977 crore in FY24, driven largely by employee costs, legal fees, advertising and operational expenses.
Employee costs alone accounted for nearly 68 per cent of overall spending, growing by 29.4 per cent to Rs 2,690 crore in the fiscal year ending March 2024.
However, Uber India managed to reduce its losses significantly. The company’s losses shrank by 71.4 per cent to Rs 89 crore in FY24 from Rs 311 crore in the previous fiscal, as per its financials.
Its revenue surged 41.1 per cent year-on-year (YoY) to over Rs 3,700 crore, but profitability remained elusive.
According to its financial statements, Uber India’s revenue from operations grew to Rs 3,762 crore in FY24 from Rs 2,666 crore in FY23.
A large portion of this revenue came from engineering support services and back-office functions provided to its parent company, Uber BV.
Meanwhile, its core ride-hailing business generated only Rs 807 crore, increasing at a slower rate of 18.9 per cent.
Recent reports suggest Uber India is considering acquiring BluSmart Mobility, a move that could potentially improve its financial standing.
However, as per reports, without major changes to its business model and operations, the company may continue to struggle in a highly competitive and cost-sensitive market like India.
Last year, the company reaffirmed its commitment to the Indian market, citing strong growth potential due to rapid digitisation, infrastructure development, and favourable demographics.
The ride-hailing giant considers India its third-largest market by volume and one of the fastest-growing globally.
“The company sees great opportunities in India to move beyond private vehicle ownership and embrace shared mobility,” said Prabhjeet Singh, President of Uber India and South Asia.
He highlighted that India’s expanding digital economy and infrastructure projects are creating a favourable environment for Uber’s services.
–IANS
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