Good news, bad news: the gig economy
Last Thursday Uber, a ride-sharing app, said that it is at last profitable, at least by one metric.
DoorDash, a delivery firm, was expected to suffer when it reported earnings on Tuesday.
Instead revenue in the latest quarter held up at nearly $1.3bn, although net losses more than doubled to $101m compared with the same period a year ago.
Gig-economy firms have seen more than $100bn in investment, but recent successes do not mean the sector has turned a corner.
According to The Economist’s calculations, the nine ride-sharing and delivery firms that have gone public so far—Uber and Lyft, two American ride-sharing firms, and Didi, their Chinese counterpart, as well as six delivery firms, from America, Britain, China, Germany and India—grew on average by 103% in their latest reporting period compared with the same period of the previous year.
But they were still not profitable.
Sales for the group have amounted to $75bn over the past twelve months and the operating loss to nearly $11.5bn.