August 5, 2021

Uber reported a second-quarter loss of $509 million on Wednesday, exceeding analysts’ adjusted EBITDA loss of about $324.5 million.

The report comes despite gross bookings reaching an all-time high of nearly $22 billion as more passengers travel and orders for food delivery rise.

The reported widening losses are solely due to Uber investing $250 million in incentives for drivers in the second quarter.

Investors are concerned about the continuing shortage of drivers in the industry as demand rises, with Uber’s rival Lyft saying it expects the limited supply of drivers to continue in the next quarter.

Overall, Uber reported revenue of $3.9 billion in the second quarter, beating average analyst estimates of $3.75 billion.

Uber said on Wednesday that the number of monthly active drivers and food suppliers rose by nearly 420,000 from February to July.

For more information, read the original story in Reuters.