Uber grows but loses $ 5.2 billion in the quarter | Business

THE Uber had loss of $ 5.236 billion in the second quarter of 2019: the financial result was pulled down due to the stock remuneration for employees after its debut on the stock exchange. However, even discounting that, the company still had losses in excess of $ 1 billion. Of course, she preferred to focus on the positive side, noting that she reached 100 million active users on the platform.

Uber on the stock exchange

This was by far Uber’s biggest quarterly loss. Most correspond to the employee compensation after the May IPO: the company prefers to pay in shares, rather than cash, and has spent $ 3.9 billion on it. She warns that this has been and will continue to be “a significant recurring expense in our business and an important part of our compensation strategy”.

However, even without taking this expense into account, Uber still suffered a loss of $ 1.295 billion; it is more than the losses in the same period last year (US $ 878 million).

Uber’s revenue is growing more slowly: 14% in one year. Considering only car trips, the increase was only 2% in the period. Uber Eats revenue, in turn, performed much better, registering a growth of 72%.

The user base of Uber Eats increased 140% in one year, and the platform now has 320,000 restaurants around the world. The company’s hope is that the delivery service will grow enough to make up for the slowdown in car racing.

Uber also celebrated its 100 million MAPCs in July, or monthly active consumers on the platform. This includes people who took a road trip, ordered delivery of Uber Eats, or rode a bicycle or electric scooter at least once a month.

Uber Eats

Uber bets on autonomous cars and tries to reduce losses

The company is trying to cut costs to reduce the loss: she laid off 400 people from her marketing department, which now has 800 employees. It also bets on autonomous vehicles, presenting a customized version of the Volvo XC90 in June. With this technology, Uber will not need to share the price of the races with drivers, increasing revenue.

The stock market was already expecting a huge loss. Even so, the shares closed down 6% on Thursday (8). The company debuted on the stock exchange at $ 45 per share.

Besides that, some executives left Uber in recent months: Ryan Graves, first employee and first CEO, left the board in May. Two other board members, Arianna Huffington and Matt Cohler, resigned in July.

With information: Uber, TechCrunch.

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