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Uber posts $1bn loss after lacklustre Wall Street debut

Written by on May 30, 2019

While its ride-hailing business has posted disappointing results, its food-delivery operation Uber Eats has grown rapidly.

Image:Uber recently made its Wall Street debut

Fierce competition from rivals like has seen the San Francisco-based firm increase its investment in rider promotions and driver incentives, while its ongoing development of autonomous vehicles and increased regulation in major cities around the world have also demanded significant financial commitment.

Image:Uber drivers have been striking in several cities recently, including London

Despite the losses – and shares continuing to trade below their IPO since Uber – bosses at the company remain upbeat about its performance.

Chief financial officer Nelson Chai said Uber remained committed to “global platform expansion and long-term product and technology differentiation”, and chief executive Dara Khosrowshahi said customer engagement was higher than ever, with an average of 17 million trips per day.

The number of journeys booked helped see revenues grow 26% in the US and Canada to $1.8bn (£1.4bn), and by the same rate in the Middle East, Europe and Africa to $487m (£386m).

Revenues were also up 6% in Asia to $267m (£211m), but fell 13% in Latin America to $450m (£356m).

The company has been helped by the growth of its food delivery business, Uber Eats.

Gross bookings, which represents all the money Uber collects on the platform except for tips, doubled over the course of the year and the service raked in $536m (£425m) in revenue – up 89% on the same time last year.

Mr Khosrowshahi said Uber would one day be “the biggest player” in the food delivery business, which also features the likes of .

Story first appeared on news.sky.com


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