Uber loses $5 billion, misses Wall Street targets despite easing price war

Uber loses $5 billion, misses Wall Street targets despite easing price war

Uber Technologies Inc (UBER.N) reported a $5.2 billion loss and revenue that fell short of Wall Street targets on Thursday as growth in its core ride-hailing business slowed, sending its shares down 6%, Trend reports citing Reuters.

Uber’s net loss, up from a loss of $878 million a year earlier, reflected $3.9 billion of stock-based compensation expenses related to its IPO earlier this year, and Wedbush analyst Ygal Arounian said its loss before interest, tax, depreciation and amortization was in line with Wall Street targets.

Still, he said, “So far, mostly everything is below expectations.”

The figures caught investors off guard because smaller rival Lyft Inc (LYFT.O) on Wednesday had raised revenue expectations and described an easing price war, sending up shares of both companies during regular trade on Thursday.

Uber shares fell 5% after hours on Thursday and Lyft dropped about half a percent. Uber had risen more than 8% and Lyft had gained 3% during the day.

Uber reported that revenue growth slowed to 14%, and the company’s core business, ride-hailing, grew revenue only 2% to $2.3 billion. If not for a 72% rise in revenue from food delivery unit Uber Eats, revenue would have dropped. Total revenue fell short of the average analyst estimate of $3.36 billion, according to IBES data from Refinitiv.

Gross bookings, a measure of total value of car rides, scooter and bicycle trips, food deliveries and other services before payments to drivers, restaurants and other expenses, rose 31% from a year earlier to $15.76 billion. Analysts on average were expecting $15.80 billion.

At the same time, Uber is keeping less money per car ride. The amount passengers spent on trips rose 20% while the amount Uber kept after paying its drivers increased just 4%.

Chief Executive Officer Dara Khosrowshahi said in a press call the competitive environment is starting to rationalize and it has been “progressively improving” since the first quarter.

Lyft on Wednesday said pricing had become “more rational”, meaning the company should spend less on promotions and incentives to win market share. It raised its revenue outlook on Wednesday.

Uber’s Khosrowshahi said the company is making its decision separate from Lyft.

Both the companies have historically relied on subsidization to attract riders and have been spending heavily to expand services into areas such as self-driving technology for Lyft and food delivery for Uber.

Uber’s costs rose 147% to $8.65 billion in the quarter, including a sharp rise in spending for research and development.

“While we will continue to invest aggressively in growth, we also want it to be healthy growth, and this quarter we made good progress in that direction,” Chief Financial Officer Nelson Chai said in a statement.

The company, which has not yet made clear whether it will make a profit, is trying to convince investors that growth will come not only from its ride services, but also from other logistics and food delivery services.

Uber said its monthly active users rose to 99 million globally, from 93 million at the end of the first quarter and 76 million a year earlier.

Kyrgyzstan receives medical supplies from Khakassia
Kyrgyzstan receives medical supplies from Khakassia
Nominations for gas flows at TAP’s interconnections
Nominations for gas flows at TAP’s interconnections
U.S. agency clears way to rename Las Vegas airport
U.S. agency clears way to rename Las Vegas airport
Loading Bars
Latest
New tourist centers to appear in all municipalities of Georgia
Georgia systematically implements rural and agricultural development policy - PM
All Georgian cities to have round-the-clock water supply in 2025
Georgia expects high rates of economic growth
Georgia begins new stage of state support for business
MasterCard plans to increase Azerbaijan's non-cash turnover in 2021
Iran's new government needs to reform policies in auto sector - analyst
Uzbekistan, UK eye establishing co-op in electricity sector
President Aliyev signs law on execution of Azerbaijani state budget for 2020
Sustainable Development Center in Moscow discloses main rivals for electric cars
Kyrgyzstan receives medical supplies from Khakassia
Uzbekistan notes increase in price for car fuel
Georgia takes active steps in developing its transit and logistics potential
Nominations for gas flows at TAP’s interconnections
Azerbaijani pavilion at Expo 2020 world exhibition in Dubai (PHOTO)
U.S. agency clears way to rename Las Vegas airport
UAE announces 2,223 new COVID-19 cases, 2,177 recoveries
President of Kyrgyzstan to pay official visit to Turkmenistan
Russia allows import of tomatoes, peppers import from Uzbekistan’s Fergana region
EU to look for formats for dialogue with Russia - Angela Merkel
High probability of COVID-19 Indian strain entering Azerbaijan - TABIB
Kazakhstan's petroleum oil export to Greece jumps
Volume of problem loans increases in Azerbaijan
Uzbekistan decides to strengthen quarantine restrictions
Georgian Agriculture Ministry reveals import-export data with Turkmenistan
Denmark decreases import of Kazakh-made goods
Azerbaijan announces number of citizens vaccinated on June 25
Ministry discloses volume of chemical products imported by US from Turkey
Prospects for production of granular building materials discussed in Azerbaijan
Azerbaijan confirms 65 more COVID-19 cases, 89 recoveries
EDB organizes sovereign bonds placement of Kazakh Finance Ministry
Azerbaijan sees decrease in population's bank deposits
Eurasian Development Bank to support Kazakh state program for affordable housing
Turkmenistan building first private storage for agricultural products in Dashoguz
Uzbekistan reducing dependence on natural resources
Review of Georgia's exports to China from January through May 2021
Numerous investment projects to be implemented in Kazakhstan’s business center
Azerbaijan discloses gas production volumes at ACG and Shah Deniz
Azerbaijan unveils 5M2021 data on oil, condensate exports
Israel requires masks indoors again as Delta variant drives up cases
Exports of Turkish cars to France surge
Russia ready to rebuild relations with EU as much as Europe itself is — Kremlin
Consul General of Iran in Kazakhstan outlines local investment opportunities
Iran eyes to export technical engineering services to Kazakhstan
Berkshire Hathaway appears to buy back more stock
Chamber of Commerce talks Iran-Kazakhstan maritime trade
Number of vaccinated citizens in Uzbekistan passes 3 million
Uzbek-Korean JV opens tender to purchase spares for electrical products
Uzbek-Russian Natural Gas-Stream Company developing deposits managed by Uzbekneftegaz
COVID-19 kills 115 more Iranians over past 24 hours
Geostat reveals volume of Russian exports to Georgia
Georgia shares data on main export products to Russia
Geostat reveals data on China's exports to Georgia
Turkey discloses volume of cargo transshipped through Gulluk port
Fitch issues first-time Long-Term Issuer Default Rating to Georgia's Telasi
Turkmenistan starts processing silkworm cocoons of new harvest in Lebap region
Azerbaijani FM exchanges views with colleagues from Austria, Lithuania, Romania in Baku
Volume of grains and legumes imported by Turkmenistan from Turkey disclosed
Turkmenistan’s new airport receives int'l certificate of compliance
Hydrogen compressor market to see growth, as demand for energy & power rising
Azerbaijani president received FMs of Romania, Austria, Lithuania, EU delegation (PHOTO/VIDEO)
14 Armenian terrorists facing 14 years to life in prison in Azerbaijan (PHOTO)
Russia reports 20,393 daily COVID-19 cases
Ministry discloses volume of chemicals transshipped through Turkish ports
Azerbaijan unveils 5M2021 volume of oil production from ACG, Shah Deniz fields
Volume of Azerbaijani oil export to Turkey disclosed
Cement product sales at Uzbek commodity exchange increase
Enter Engineering, Russian Uralmash to build processing plant in Uzbekistan
Demand for granular building materials grows in Azerbaijan
License of Capital Bank Kazakhstan revoked
Azerbaijani people to mark Armed Forces Day with joy and pride - Parliament speaker
Germany increases import of Turkish-made chemicals
Uzbek-Korean JV opens tender for spares for oil seals
Russia’s Tatneft in Turkmenistan opens tender for connection of utility room
KAZAKH INVEST to share agri-food investment projects with IFPA
Uzbekistan to increase number of flights on Tashkent–Fergana-Tashkent route
Turkmenistan ready for further close co-op with Japanese enterprises
Azerbaijani unveils 5M2021 data on oil exports to Ukraine
Azerbaijan names judoka who will bear national team's banner at Tokyo 2020 Olympics
Azerbaijan's Parliament adopts new draft law on energy efficiency
Ukraine ready to partake in restoration of Azerbaijan's liberated lands
Lebanon caretaker PM approves financing fuel imports at weaker exchange rate
71.2% of population in Kyrgyzstan has antibodies to COVID-19
Kazakhstan’s freight transportation operator opens tender for filters repair
Date of elections to local self-government bodies in Georgia announced
Salaries of military personnel serving in Azerbaijan's liberated lands raised - presidential order
Azerbaijan shows footage from Shahvelli village of Jabrayil district (VIDEO)
Kazakhstan’s Almaty Power Stations JSC opens tender for buy measuring equipment
Uzbekistan reveals COVID-19 data for June 25
Azerbaijan publishes latest prices for its oil
Cloud data warehouse co Firebolt raises $127m
Kazakhstan increases trade with Sweden amid COVID-19
BlackBerry first-quarter revenue beats expectations, shares rise
Nike forecast for online sales boom, post-lockdown demand drives shares up 13%
WB, IFC working with Azerbaijan in designing well-functioning wholesale, retail electricity market
Covid-19: INS Shardul brings medical oxygen supplies from Gulf to Mumbai port
India again urges OPEC to phase out oil output cuts
India cuts Middle East oil imports as it seeks to diversify energy sources
Karwar Naval Base will become Asia's largest: Defence Minister Rajnath Singh
Global electronics firms Foxconn, Flex, Jabil, Sanmina among 29 register under telecom PLI
All news