Uber India's Expenses Rise 26.4%, Losses Decline to Rs 89 Crore in FY24
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Synopsis
Uber India reports a 26.4% rise in expenses, totaling Rs 3,977 crore in FY24. Despite strong revenue growth of 41.1%, the company reduced losses to Rs 89 crore. Employee costs dominate spending, highlighting the ongoing challenges in achieving profitability in India's competitive ride-hailing market.
Key Takeaways
- Expenses increased by 26.4% to Rs 3,977 crore.
- Employee costs constitute 68% of total expenditure.
- Losses declined by 71.4% to Rs 89 crore.
- Revenue surged 41.1% to Rs 3,762 crore.
- Considering acquisition of BluSmart Mobility.
New Delhi, March 19 (NationPress) The ride-hailing giant Uber India continues to face challenges in achieving profitability despite significant revenue growth, as escalating expenses have significantly impacted its financial results, according to the latest financial report.
The company's total expenses increased by 26.4 percent, reaching Rs 3,977 crore in FY24, primarily driven by costs associated with employees, legal fees, advertising, and operational activities.
Employee expenses alone represented nearly 68 percent of total expenditures, growing by 29.4 percent to Rs 2,690 crore in the fiscal year concluding in March 2024.
On a positive note, Uber India successfully reduced its losses significantly. The company's losses diminished by 71.4 percent to Rs 89 crore in FY24, down from Rs 311 crore in the prior fiscal year, as detailed in its financial disclosures.
Revenue surged by 41.1 percent year-on-year (YoY), exceeding Rs 3,700 crore, although profitability remained out of reach.
According to financial statements, Uber India’s operational revenue rose to Rs 3,762 crore in FY24 from Rs 2,666 crore in FY23.
A substantial portion of this revenue was derived from engineering support services and back-office functions provided to its parent entity, Uber BV.
In contrast, the core ride-hailing segment produced only Rs 807 crore, with a slower growth rate of 18.9 percent.
Recent reports indicate that Uber India is contemplating acquiring BluSmart Mobility, a strategic move that could enhance its financial outlook.
However, sources suggest that without significant modifications to its business model and operations, the company may continue to face challenges within India’s highly competitive and cost-sensitive market.
Last year, the organization reaffirmed its dedication to the Indian market, citing substantial growth potential owing to rapid digital transformation, infrastructure advancements, and favorable demographic trends.
The ride-hailing leader regards India as its third-largest market by volume and one of the fastest-growing globally.
“The company identifies immense opportunities in India to transcend private vehicle ownership and adopt shared mobility,” stated Prabhjeet Singh, President of Uber India and South Asia.
He emphasized that India’s growing digital economy and infrastructure initiatives are fostering a conducive environment for Uber’s services.
