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Uber narrows losses but growth slows | Uber narrows losses but growth slows |
(about 9 hours later) | |
Uber narrowed its losses in the second quarter but remains a long way from making a profit, according to company results published on Wednesday. | |
The ride-hailing firm reported an $891m (£702m) net loss for the three months to 30 June, compared with a $1.1bn loss a year ago. | The ride-hailing firm reported an $891m (£702m) net loss for the three months to 30 June, compared with a $1.1bn loss a year ago. |
Revenue growth slowed and the firm continues to face regulatory scrutiny in key markets such as New York. | Revenue growth slowed and the firm continues to face regulatory scrutiny in key markets such as New York. |
It is under pressure to become more profitable for a planned IPO next year. | It is under pressure to become more profitable for a planned IPO next year. |
According to the US firm, net revenue, which strips out what gets paid to drivers, was $2.7bn in the quarter. | According to the US firm, net revenue, which strips out what gets paid to drivers, was $2.7bn in the quarter. |
New York votes to cap Uber and Lyft cars | New York votes to cap Uber and Lyft cars |
Uber sells South East Asia business to Grab | Uber sells South East Asia business to Grab |
Uber probed over gender discrimination | Uber probed over gender discrimination |
That is up by more than 50% since last year but a slowdown from the 67% seen in the first quarter. | That is up by more than 50% since last year but a slowdown from the 67% seen in the first quarter. |
The firm also made $12bn in quarterly gross bookings, which includes both rides and its food-delivery service, Uber Eats, up 40% from a year before. First-quarter growth totalled 55%, however. | The firm also made $12bn in quarterly gross bookings, which includes both rides and its food-delivery service, Uber Eats, up 40% from a year before. First-quarter growth totalled 55%, however. |
Uber has retreated from major markets China, Southeast Asia and Russia over the last year after failing to fend off local competitors. | Uber has retreated from major markets China, Southeast Asia and Russia over the last year after failing to fend off local competitors. |
But it said it was still committed to India and the Middle East, despite pressure from some investors to quit those markets too. | But it said it was still committed to India and the Middle East, despite pressure from some investors to quit those markets too. |
Boss Dara Khosrowshahi said it was also investing heavily in "big bets" outside its core ride-hailing business, such as Uber Eats and electric bikes and scooters. | Boss Dara Khosrowshahi said it was also investing heavily in "big bets" outside its core ride-hailing business, such as Uber Eats and electric bikes and scooters. |
Mr Khosrowshahi was brought in last year to revive Uber's image after a damaging sexual harassment scandal engulfed the firm. | Mr Khosrowshahi was brought in last year to revive Uber's image after a damaging sexual harassment scandal engulfed the firm. |
But the company still has a number of costly legal battles, including over its classification of drivers as independent contractors, and federal inquiries to resolve. | But the company still has a number of costly legal battles, including over its classification of drivers as independent contractors, and federal inquiries to resolve. |
Regulatory pressure also threatens to hinder growth in major markets. | Regulatory pressure also threatens to hinder growth in major markets. |
Last week New York voted to impose a temporary cap on new licences for ride-hailing vehicles to tackle congestion. And Mayor of London Sadiq Khan on Wednesday said he would seek similar restrictions in the UK's capital. | Last week New York voted to impose a temporary cap on new licences for ride-hailing vehicles to tackle congestion. And Mayor of London Sadiq Khan on Wednesday said he would seek similar restrictions in the UK's capital. |
David Brophy, professor of finance at the University of Michigan, told Reuters news agency the firm could expect to see its valuation slashed in a public listing if it did not show more progress towards becoming profitable. | David Brophy, professor of finance at the University of Michigan, told Reuters news agency the firm could expect to see its valuation slashed in a public listing if it did not show more progress towards becoming profitable. |
The ride-hailing giant was most recently valued at $72bn, making it one of the most valuable privately held firms in the world. | The ride-hailing giant was most recently valued at $72bn, making it one of the most valuable privately held firms in the world. |