Uber hits targets with $1bn loss in Q1
In its first quarterly report as a public company, Uber reported a $1 billion loss, in line with its forecasts. There was also good news, as revenue had risen 20%. However, Uber still faces challenges to become profitable one day.
According to the Massachusetts Institute of Technology, even driverless ridehailing won’t be profitable. That doesn’t stop Uber from trying, though.
Uber reports a revenue of $3.1 billion for Q1 2019, and a loss of $1 billion, both in line with the company’s forecast and seemingly unaffected by a share price trading more than 10% below its IPO price.
In the same period last year, Uber reported a profit of $3.75 billion, attributable to the sale of international assets. On an operating basis, Uber’s losses more than doubled compared to the previous year.
However, Uber also reports a 3.4% rise in the number of bookings and a monthly active usership of 93 million, up from 91 million at the end of last year.
Increasingly, Uber is being faced with challenges from regulators and with pressure to increase wages for their drivers. It remains to be seen whether the growing number of users, drivers and markets that rely on Uber will be enough to bring the company’s results in the black.
Image: NYSE on the day of the Uber IPO