Business

Even with earnings topping market forecasts, Uber reported more losses than expected

The ride-hailing giant lost $1.1 billion during the third quarter

Despite having undoubtedly changed an entire sector, Uber, as well as other disruptive peers, still struggle when it comes to proving that their business model is actually profitable. At this season earnings, the ride-hailing giant surpassed market expectations, reaching $3.8 billion in revenue, against the $3.4 billion expected by Wall Street. 

But it wasn’t just earnings that overcame market estimations: Uber, once again, ended a quarter with major losses – $1.1 billion – which took the company’s shares down to as much as $29.21, a 6% drop in after-hours trading, after the report’s announcement this Monday, 4.

The ride-hailing firm also reported 1.7 billion rides in the period, as well as 103 million active riders. As for other segments, Uber Eats was figured with quite positive numbers: the food delivery reached $392 million in revenue this third quarter – a 105% increase in comparison with the same period of 2018. 

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Uber Freight, Uber’s two-year-old platform that matches carriers and shippers, has also drawn positive numbers for the company, having grown its network to over 50,000 carriers and reaching 218 million in revenue, 78% more than in last year third quarter. 

“Our results this quarter decisively demonstrate the growing profitability of our Rides segment,” said CEO Dara Khosrowshahi in a press release. “Rides Adjusted EBITDA is up 52% year-over-year and now more than covers our corporate overhead. Revenue growth and take rates in our Eats business also accelerated nicely. We’re pleased to see the impact that continued category leadership, greater financial discipline, and an industry-wide shift towards healthier growth are already having on our financial performance,” concluded.