Uber posts $1bn loss in first quarterly report since disappointing IPO
Jun 02 2019
From a broader perspective, Uber's first-quarter earnings in 2019 reported a gross bookings growth of 230% for its other bets, while ride-hailing grew 22% compared to the same quarter past year.
In the first quarter of 2019, the company's losses amounted to $1 billion with $3.1 billion in revenue.
The platform generated 2 thousand 761 million dollars in adjusted revenues in the first three months of the year, an increase of 14 percent over the same period of the previous year, and above the analyst estimates of 2 thousand 75 million.
The U.S. ride-hailing giant saw gross bookings surge 41 percent year over year, which nearly remained the same as the figure of 43 percent in the fourth quarter of 2018. "Our investments remain focused on global platform expansion and long-term product and technology differentiation, but we will not hesitate to invest to defend our market position globally".
But Uber has had a rocky start since going public, an embarrassing debut for what was supposed to be one of the biggest initial public offerings in US history. But the ride-hailing giant posted $1 billion in losses as it fights to maintain market share.
Since going public, Uber has not only seen its stock trading below its IPO price, but the company has also been hit with worker strikes. These customers helped the company to a quarterly revenue of $3.1bn, which is 20 per cent higher than the year prior.
Still, Uber reported that both bookings and the number of people using its platform climbed by more than 30 per cent, positive signs of growth. Shares in Lyft fell below their IPO price on their second day of trading and have continued to tumble since.
Uber grew across all of the regions where it operates, except for Latin America, where competitor Didi has been expanding.
According to The Verge, Uber is planning to bank on the success that Eats is having to improve its ride-hailing counterpart. "In particular, in India, increased incentives to consumers, drivers and restaurants drove almost half of the year-over-year decline in Uber Eats' take rate to 8% from 12% a year ago", said chief financial officerNelson Chai during a call with analysts.
What do you think about UBER stock after the earnings?
Mr. Khosrowshahi said Uber would one day be "the biggest player in the food delivery business, which also features the likes of the soon-to-be part-Amazon-owned Deliveroo".