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Uber shares skid as losses widen

Uber shares skid as losses widen

2 -min read
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2 -min read
Listen to this article

[SAN FRANCISCO] Uber shares skidded on Monday after the ride-hailing giant reported widening losses in the just-ended quarter as it boosted investments in new services and features.

San Francisco-based Uber reported a loss of US$1.2 billion, up from a loss of US$986 million a year ago.

Uber revenue was up 30 per cent to US$3.8 billion in the quarter on growth in its shared rides service as well as its Eats restaurant meal delivery and its Freight platform that matches shippers with truckers.

"Our results this quarter decisively demonstrate the growing profitability of our Rides segment," said Uber chief executive Dara Khosrowshahi.

The number of people using Uber's platform monthly grew 26 per cent to 101 million, while the number of trips taken by riders rose 31 per cent to nearly 1.8 billion, according to the earnings report.

The loss included US$401 billion in stock-based compensation at the San Francisco-based company, which recently reorganised operations to cut costs.

Uber shares were down more than four percent in after-market trades that followed release of the earnings figures.

The company is moving to broaden its offering beyond traditional ridesharing into services ranging from scooters and electric bikes to a planned "flying car" operation.

Uber's offerings in its "Rides" earnings category include motorbikes, minibuses, taxis, and auto rickshaws along with cars.

Revenue take in at Eats restaurant meal delivery service grew 64 per cent to US$645 million in the quarter, while Freight revenue was up 78 per cent to US$218 million, according to Uber.

Uber recently agreed to take a majority stake in Cornershop, an online grocery provider in Chile, Mexico, and which recently expanded to Peru and Canada.

Mr Khosrowshahi has said he wants Uber to be a versatile app that becomes "the operating system for your everyday life."

AFP

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