Another quarter, another loss: the Uber recorded losses of US $ 1 billion in the first quarter of this year, the first financial result after its debut on the stock exchange. Passenger transport revenue grew by just 9% compared to the same period last year, while Uber Eats almost doubled.
Uber had revenue of $ 3.1 billion in the first quarter of 2019, up 20% in one year. Passenger transportation revenue corresponds to most of this amount: it was US $ 2.4 billion, up 9%.
Meanwhile, Uber Eats brought in $ 536 million in revenue, up 89%. And the “other bets” division – which includes bicycles, electric scooters and cargo transportation via Uber Freight – soared 263% to $ 145 million.
In 2018, Uber bought the bike-sharing startup Jump. Some time later, she also started operating an electric scooter service in the USA. The company even has plans to develop autonomous bikes and scooters to speed up the recharging of batteries. She promises to bring Jump’s electric bicycle to Brazil later this year, as well as scooters.
CEO Dara Khosrowshahi said earlier that in the future, less than 50% of Uber’s revenue will come from passenger transportation. The company tries to rely less on cars as it reaches a saturation point for drivers around the world.
Uber will encourage use of Eats to grow
To that end, Khosrowshahi says Uber will cross-promote between Uber and Uber Eats. “What we are looking for is to significantly increase the percentage of our MAPCs (monthly active consumers on the platform) who use both products,” said the CEO at the investor conference. “We are beginning to experiment with ways to offer Eats promotions to passengers.”
This strategy may be stronger in Latin America, according to Khosrowshahi, because Uber is the only company in the region that offers both car trips and food delivery. In Brazil, we only have companies that operate in one of the two sectors: 99 and Cabify on one side, iFood and Rappi on the other.
Uber’s shares have been trading below its IPO price in the three weeks since its debut on the NYSE (New York Stock Exchange). Investors expected the company to have $ 100 billion in market value; it is currently worth about $ 67 billion.
Still, as Uber already predicted a loss of $ 1 billion for this quarter, and showed that it has been able to control spending, the shares were up 1% after the markets closed.