Uber Posts $5.2 Billion Loss and Slowest Ever Growth Rate

For the second quarter, Uber reported its largest-ever loss, totaling $5.2 billion, and its slowest-even revenue growth. “The double whammy immediately renewed questions about the prospects for the company, the world’s biggest ride-hailing business,” reports The New York Times. From the report: For the second quarter, Uber said it lost $5.2 billion, the largest loss since it began disclosing limited financial data in 2017. A majority of that — about $3.9 billion — was caused by stock-based compensation that Uber paid its employees after its I.P.O. Excluding that one-time expense, Uber lost $1.3 billion, or nearly twice the $878 million that it lost a year earlier. Revenue grew to $3.1 billion, up 14 percent from a year ago, the slowest quarterly growth rate the company has ever disclosed.

“We think that 2019 will be our peak investment year,” Dara Khosrowshahi, Uber’s chief executive, said in an interview, noting that he expected losses to decline over the next two years. “We want to make sure that the kind of growth we have is healthy growth.” He added that there were other positives. Uber’s bookings — the money it gets from rides and deliveries before paying commissions to drivers — rose 31 percent from a year ago. The company also added customers, totaling more than 100 million monthly active riders for the first time. The report notes that it wasn’t all bad. The company’s food delivery business, Uber Eats, “more than doubled its number of monthly customers,” and Uber’s price war with Lyft has subsided, “which could lead to more revenue,” reports The New York Times.

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