Uber posts $1 billion loss in quarter as growth in bookings slows

Nov 17, 2018

Uber Technologies Inc said that growth in bookings for its ride-hailing and delivery services rose 6 percent in the latest quarter, the third quarter in a row that growth has remained in the single digits after double-digit growth for all of last year.

The San Francisco-based firm lost $1.07 billion for the three months ending Sept. 30, a 20 percent increase from the previous quarter but down 27 percent from a year ago, when the company posted its biggest publicly reported quarterly loss on the heels of the departure of Uber co-founder and former Chief Executive Travis Kalanick.

Uber is seeking to expand in freight hauling, food delivery and electric bikes and scooters as growth in its now decade-old ride-hailing business dwindles. The company, valued at $76 billion, faces pressure to show it can still grow enough to become profitable and satisfy investors in an initial public offering planned for some time next year.

Its adjusted loss before interest, taxes, depreciation and amortization was $592 million, down from $614 million last quarter and $1.02 billion a year ago.

"We had another strong quarter for a business of our size and global scope," said Nelson Chai, Uber's chief financial officer, who joined in September after the job had been vacant for three years. He emphasized the "high-potential markets in India and the Middle East where we continue to solidify our leadership position."

But broader economic conditions and sustained losses could push Uber to merge with rivals in India and the Middle East, particularly as Uber and India-based Ola share an investor in SoftBank Group Corp (9984.T).

Uber's gross bookings were $12.7 billion, up 6 percent from the previous quarter and up 41 percent from a year ago. In late 2016, Uber's quarterly bookings growth approached 30 percent, and in early 2017 it still sustained double-digit growth quarter-over-quarter. At the start of this year, however, bookings growth slid into the single digits.

Revenue for the quarter was $2.95 billion, a 5 percent boost from the previous quarter and up 38 percent from a year ago. That trailed the second-quarter year-over-year revenue increase of 63 percent.

As a private company, Uber is not required to publicly disclose financials, but last year started releasing selected figures.

 

-Reuters

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