Uber and Lyft are getting less unprofitable, but COVID-19 is still a drag on their business

Uber and Lyft are getting less unprofitable, but COVID-19 is still a drag on their business


Photo by ROBYN BECK/AFP via Getty Images

Uber and Lyft reported their quarterly earnings this week, and while both companies are showing signs of improvement, the COVID-19 pandemic continues to cast a long shadow over the overall ride-hailing business.

It raises the question of how both companies, neither of which have ever turned a profit, can hope to claw their way out of the deeper financial pit in which they’ve been cast by COVID.

Uber lost $968 million over the last three months, with its adjusted net revenues down 16 percent compared to the fourth quarter of 2019. Over the entire year, the company reported a net loss of $6.7 billion, down slightly from the $8.5 billion it lost in 2019. It brought in less revenue compared to 2019…

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