Uber Reports $1 Billion First-Quarter Loss in Debut Public Earnings
Uber reveals a $1 billion loss on $3.1 billion in revenue for its first quarterly report as a public company. The ride-hailing giant sees slow growth in its core business while its food delivery segment surges.
Uber posts a $1 billion loss on $3.1 billion in revenue for the first quarter of 2019 in its debut earnings report as a public company. Gross bookings rise 34% to $14.6 billion, driven largely by the rapid expansion of Uber Eats. Chief executive Dara Khosrowshahi highlights a record 17 million average daily trips and emphasizes the company's goal to become a comprehensive platform for local transportation and commerce.
The company's stock continues to struggle below its initial public offering price, closing at $39.90 per share after a rocky market debut. Uber originally prices its IPO at $45 per share but opens at a disappointing $42, causing its current valuation to drop to approximately $67 billion. This valuation falls significantly short of the $100 billion market cap that many Wall Street investors originally anticipated.
While overall revenue grows 20% compared to the same period last year, Uber's core ride-hailing business grows at a much slower rate of just 9%. In stark contrast, the Uber Eats delivery segment shows remarkable strength with an 89% increase in revenue and a 108% jump in gross bookings. Competitor Lyft faces similar public market challenges, trading well below its own IPO price at $56 per share with a market cap of around $16 billion.