Uber Losses $1Billion Weeks Upon Market Listing
May 31, 2019 | Friday
Uber Technologies Inc. reported its disappointing drop earlier this month as a ride-hailing company with a $1 billion loss. This quarterly loss occurs even with a 20 percent increase in revenues amounting to $3.1 billion with an increase in active users monthly to 93 million.
The reported results are in line with a lot of analysts' forecasts, which may include reassurance regarding the company's future ability to profit. On May 10 the ride-hailing company's share dropped by about 11 percent since it listed on the Wall Street.
Uber is the largest at the group of Silicon Valley start-ups that went public this year facing the situation within the global market sell-off initiated by the returning U.S.-China trade disputes.
Uber had faced a number of challenges in the past. It went against strong competition in the smartphone ride-hailing sector. It acquired additional cost for sign up of new drivers and established its delivery service - Uber Eats.
According to Uber's Finance Chief Nelson Chai, he'd seen a few less threatening pricing on its competitors, which includes its main competition - Lyft. Chai added that the company is ready for an additional cost and is not hesitant to spend in defending its "market position globally."
As of now, the company aspires to include e-bikes, electric scooters, and aircraft to allow its people to hail ride through their mobile smartphones.
During a conference call, Uber's chief executive officer, Dara Khosrowshahi said the disappointing start was just a step towards its "long journey," making Uber the platform that moves people and a massive scale conveyor of commerce around the world.
Meanwhile, Uber's share price went almost flat during after-hours trade, then immediately follow the number release. However, it went on 1.6 percent higher before it falls back.
For a few analysts, there's an uneasy feeling on the company's ability to profit. A few investor's bet Uber's share price will fall.
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