Uber shares skid as losses widen

In this file photo, a screen shows the numbers of Uber during the ride sharing companie’s IPO at the New York Stock Exchange (NYSE) on Wall Street in New York City. (AFP)

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 $1.2 billion, up from a loss of $986 million a year ago.

Uber revenue was up 30 percent to $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 percent to 101 million, while the number of trips taken by riders rose 31 percent to nearly 1.8 billion, according to the earnings report.

The loss included $401 billion in stock-based compensation at the San Francisco-based company, which recently reorganized 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 percent to $645 million in the quarter, while Freight revenue was up 78 percent to $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.

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

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Last Update: 06:54 KSA 09:54 - GMT 06:54
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