Uber lost another $1.1 billion in the third quarter of 2019, up from $986 million in the same quarter a year ago. Uber lost about the same amount in the first quarter of 2019 and lost even more in the last quarter.
Racking it up
After U.S. stock markets closed, Wall Street didn’t seem impressed with the results. Uber’s stock price fell about 5% in after-hours trading. Its stock price is now down to $31, down about 30% from the IPO price of $45. San Francisco-based Uber turned in a net loss $1.16 billion for the three months that ended September. For all of 2019 so far Uber has lost more than $7 billion. Majority of Uber’s losses are tied to the expansion of its businesses such as Uber Eats, Uber Freight, research and development and its advanced technologies group.
The growth of Uber’s ride-hailing business has been slowing down; it grew only 22%, year over year, in the third quarter. In contrast, Uber Eats revenue grew by 77%. So while Eats lost money, that could be because the product is earlier in its growth phase than the core rides platform. Once Eats matures, it might wind up being profitable just like Uber’s ride platform. At least that’s the story Uber is telling us.
In October, the company announced the last of three rounds of sweeping layoffs at the company that saw 1,185 staffers lose their jobs. Dara Khosrowshahi, the company’s chief executive called the layoffs a chance to ensure that the company was “structured for success for the next few years.”
As Uber has grown in multiple directions, investors are wary of how far off profitability may be.