Mobility startups witness decrease in profit due to pandemic

Mobility startups witness decrease in profit due to pandemic

FY21 was a nightmare for mobility startups and ride-hailing giants like Uber and Ola, as the pandemic affected their operations. While Ola has yet to file financial statistics for FY21 (or even FY20), Uber India saw a 47.3 percent reduction in operating profits during the fiscal year ended March 2021.

Uber India’s operating revenue fell to Rs 370.5 crore in FY21, down from Rs 703.1 crore in FY20. During the previous fiscal year, around 81 percent of these revenues, or Rs 300 crore, were earned by Uber’s ride-hailing operation, with the remaining Rs 70.5 crore collected by Uber Inc. for offering of business support services to group companies. The business support segment accounted for a bigger portion of Uber’s revenue in FY20, when it received Rs 560.33 crore from its Amsterdam-based parent in exchange for support services rendered during that year.

Importantly, Uber India lost Rs 602.7 crore on the ride-hailing segment while profiting Rs 5.54 crore on support services during FY21. It’s worth noting that the company no longer operates a meal delivery service in India, having sold UberEATS to Zomato in January 2020.

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