Uber loses $7 billion in three months, after disappointing Wall Street debut

The Uber IPO may not be a sure bet for investors.

The world’s largest ride-hailing service, Uber, has reported its biggest loss – over US$5 billion (NZ$7 billion) – and its slowest-ever revenue growth.

Amid concerns about its slow sales and whether it can make money, and after a disappointing initial public offering in May, Uber said it lost US$5.2b in the three months ended June, the New York Times reported.

Most of the loss was due to stock-based compensation Uber paid employees after its IPO. Without that, Uber lost US$1.3b, compared with US$878 million a year earlier.

It’s the largest loss since it began disclosing limited financial data in 2017.

The world's largest ride-hailing service, Uber, has reported its biggest loss - over US$5 billion (NZ$7 billion).
AP
The world’s largest ride-hailing service, Uber, has reported its biggest loss – over US$5 billion (NZ$7 billion).

Revenue growth of 14 per cent, to US$3.1b, was the slowest rate Uber has ever disclosed.

The company’s food delivery business, Uber Eats, more than doubled its number of monthly customers.

Updated: August 8, 2019 — 9:08 pm

Leave a Reply

Your email address will not be published. Required fields are marked *