Uber Reports Bigger Loss on Less Than Expected Revenue

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  • #21553
    Super Harley
    Participant

    Uber Technologies Inc worse than Q2 expected earnings…

    [article]1666[/article]

    #21561
    Super Harley
    Participant

    Uber CEO Dara Khosrowshahi said massive $5.2 billion loss a “once-in-a-lifetime” hit as he tries to steer it toward profitability.

    In an interview with CNBC’s David Faber and Jim Cramer on Friday,

    Khosrowshahi said he’s targeting 30% revenue growth in the back-half of the year, compared to net revenue growth of 26% in the second quarter. He added that spending will increase, but it will decline as a percentage of revenue.

    “I think we’ve got very good visibility into our own business as far as the business model and how we can tweak it and how we can drive more efficiency,” Khosrowshahi said. “We think we can not only survive, but we can really thrive in this business.”

    Khosrowshahi pushed back on fears that Uber has lost its “founder mentality” after ousted CEO Travis Kalanick, known for his growth-at-all-costs approach, left the company in 2017.

    “The founder mentality, that edge, that fire, is absolutely something we want to keep going at the company,” Khosrowshahi said. “It’s a big part of what made the company successful and I absolutely think it will play a big part in making the company successful moving forward.”

    Khosrowshahi continues to face increasing pressure from investors that he can get Uber on track to profitability. That’s likely to be a tough task, given that Uber has long subsidized its rides. He also addressed the stock’s lackluster performance since Uber’s IPO.

    “We’ve got to do a better job as far as telling our story to the markets,” Khosrowshahi said. “Long term, the market will take care of itself, and I think that’s what we’re focused on right now.”

    He said the company was recently forced to increase prices in New York City due to stricter regulations from the city’s Taxi and Limousine Commission. As a result, Uber has had to “restrict the number of drivers” that can enter the marketplace.

    “I think it’s a tragedy. I think that when you put into law laws that are not market driven, you wind up helping special interests and hurting other people,” Khosrowshahi said. “The neighborhoods that need transit the most… our business is suffering there and that’s just not fair.”

    In an interview with CNBC’s Deirdre Bosa on Thursday, Khosrowshahi said 2019 will be the company’s “peak investment year” and that losses should come down in 2020 and 2021. He added that he’s certain “the business will eventually be a break even and profitable business.”

    Excluding stock-based compensation, Uber’s losses were approximately $1.3 billion, or about 30% worse than the prior quarter.

    #21569
    Truman
    Participant

    There is effectively no barrier to entry to Lyft and Uber – should their brands become toxic with these sorts of losses oh my ……

    #23668
    Super Harley
    Participant

    [color=green][size=5][b]Uber Technologies Inc +4.93% After GrubHub $GRUB Buy News
    Market sees Boosting #UberEats
    $UBER $33.23 +$1.56[/b][/size][/color]

    Uber Technologies Inc. has made an offer to acquire food-delivery startup Grubhub Inc., according to people familiar with the matter, Bloomberg News reports.

    The companies are in talks about a deal and could reach an agreement as soon as this month, said the people, who asked not to be identified because the matter isn’t public. Chicago-based Grubhub is valued at about $4.5 billion, while Uber has a market capitalization of about $55 billion.

    Market Summary > GrubHub Inc
    NYSE: GRUB
    56.92 USD +10.09 (21.55%)

    Market Summary > Uber Technologies Inc
    NYSE: UBER
    33.23 USD +1.56 (4.93%)
    May 12, 11:22 AM EDT

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