Info-tech

Despite poor show in global markets, Uber posts 30% rise in net in FY18

Priyanka Pani Mumbai | Updated on January 21, 2019

Uber India’s technology arm Uber India Technology also saw manifold jump in its net profit at Rs 19.6 lakh in 2017-18

Uber India Systems, the ride-sharing company’s marketing and support services entity in India, has reported a 30 per cent growth in its revenue to ₹533 crore in the fiscal 2018.

The revenue growth has been better compared with fiscal 2017, when the company posted a 10 per cent growth to ₹410 crore as compared with the previous year, according to its filings with the Registrar of Companies (RoC).

Important recovery

The company’s recovery in revenue growth assumes importance as the year 2017-2018 had not been a very good period for the global ride-sharing major with its founder and CEO Travis Kalanick quitting.

Not only did the company grow its volumes while struggling with global leadership crisis and fighting its arch-rival Ola in India, it also grew profitably. Uber India’s FY18 profits grew 33 per cent at ₹40 crore compared with ₹30 crore in FY17.

Continuous exercise

The total expenses have also gone up, at ₹ 492 crore during the period ending March 31, 2018, from ₹ 380 crore in the year-ago period.

Bengaluru-based Ola, owned by ANI Technologies, is yet to file its earnings report for FY18. However, in FY17, the total revenues of the company stood at ₹1,286 crore, which is more than double the revenues of Uber India in FY18.

However, Ola’s growth has also come from its continuous exercise of burning cash through promotions and discounts. The company has posted huge loss in FY17.

Uber India’s technology arm Uber India Technology also saw manifold jump in its net profit at ₹19.6 lakh in 2017-18, compared with ₹3.22 lakh in 2016-17, as per its RoC filings accessed by business intelligence platform Tofler. The revenue grew to ₹21.5 crore in FY18.

During the financial year 2017-18, Uber had undertaken some initiatives that helped the company grow profitably.

“In 2017, we were focussed on moving from a start-up to a sustainable business in India. As a result, we recorded double-digit growth and continue to clock over a million trips a day,” said its the then India Head Amit Jain in a statement in December last year. The company had also launched uberPOOL and Uber Eats.

Published on January 21, 2019

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