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EMERGING TECH
Uber books a $1.07B loss as it staggers toward a public offering
Ride-hailing giant Uber Technologies Inc. today reported a big loss in its third quarter as it staggers toward an expected initial public offering in the first half of 2019.
Uber reported a $1.07 billion loss in the quarter ended Sept. 30, adjusted down on earnings before interest, taxes, depreciation and amortization to a loss of $527 million. On either metric, the loss was about 20 percent higher than Uber’s loss in the second quarter.
While continuing to bleed money, Uber reported revenue of $2.95 billion in the quarter, up 38 percent from the same quarter last year. Gross bookings — the amount before paying drivers — rose 34 percent, to $12.7 billion. Cash on hand was $6.55 billion, down from $7.3 billion at the end of the second quarter, reflecting the continuing losses.
Uber’s long game has always been winning markets through discounting and other incentives and then eventually hitting profitability, but revenue growth is slowing — down from the 51 percent growth in the last quarter.
There were some positives in the quarter. For the first time, Uber provided specific numbers for its UberEats business. The food delivery business generated $2.1 billion in gross bookings in the quarter and now represents 17 percent of Uber’s $12.7 billion in gross bookings for the quarter, a jump of 150 percent from a year ago.
As major players such as Ford Motor Co. and LimeBike Inc. continue to build an ecosystem of various transport options, Uber Chief Financial Officer Nelson Chai told CNBC, the company will continue to expand into complementary markets. “As we look ahead to an IPO and beyond, we are investing in future growth across our platform, including in food, freight, electric bikes and scooters, and high-potential markets in India and the Middle East where we continue to solidify our leadership position,” he said.
Exactly when Uber plans to go public isn’t known, but it could happen as early as the first quarter. Uber hired Wall Street veteran Nelson Chai in August to lead the IPO while Chief Executive Dara Khosrowshahi is on record saying it will happen.
How the market responds to Uber’s IPO is another matter given that it continues to book massive losses and is seemingly only 18 months away from running out of money altogether absent new capital or debt.
Photo: ell-r-brown/Flickr
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