Tuesday, November 28

Uber Posted Huge $5 Billion Loss, Share down 6 Percent

Cab aggregator service Uber posted a record $5.2 billion loss in the second quarter report, as growth in its core ride-hailing service got slow.

After the announcement of Second-quarter results, Uber shares down 6%.

Uber’s second-quarter net loss, widening from a loss of $878 million a year earlier, included $3.9 billion of stock-based compensation expenses related to its IPO earlier this year and nearly $300 million in “driver appreciation” related to the stock sale.

The second-quarter report caught Uber investors off guard because Uber’s rival Lyft had raised revenue expectations and described an easing price war.

“Our platform strategy continues to deliver strong results, with trips up 35% and Gross Bookings up 37% in constant currency, compared to the second quarter of last year,” said Dara Khosrowshahi, CEO.

In July this year, Uber reached over 100 million Monthly Active Platform Consumers for the first time.

Uber stock had risen more than 8% and Lyft had gained 3% during the day. Following Uber’s report, its shares fell 6% and Lyft dropped nearly 2%.

Uber has raised $1 billion investment by Toyota, DENSO, and SoftBank in July 2019.