Uber shares skid as quarterly loss soars


SAN FRANCISCO: Uber shares plunged Thursday after a recent report that the rideshare company exceeded Wall Street expectations last quarter.

The San Francisco company said revenues rose 14 percent to $ 3.2 billion, but lost $ 5.2 billion compared to the loss of $ 888 million over the same period last year.

According to Uber, stock-related compensation costs have been hit hard by income.

Uber shares fell more than 7{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} following the announcement of the return after market trading.

Chief Financial Officer Nelson Chai said, "We will continue to actively invest in growth, but we also want growth to be healthy growth and have made good progress in that direction this quarter."

According to the difference, Uber Eats restaurant meal delivery services grew more than 140{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} over the same quarter last year.

Meanwhile, Uber Freight service's revenue, which links shippers and carriers, has increased tenfold.

The earnings report came a few weeks after Uber found a marketing team of more than 1,200 employees cutting 400 jobs to reduce costs and increase efficiency.

According to the company, Uber chief executive Dara Khosrowshahi and marketing team leader Jill Hazelbaker announced an internal restructuring with the goal of making the company's brand message more consistent.

In June, Khosrowshahi touched the wheel of a passenger car company following a bumpy stock market debut.

After debuting at $ 45 for a public offering in May (equivalent to a market value of $ 8.2 billion), Uber's shares reversed and sought to return to the offering value.

The company worked on long-term projects for electric bicycles and scooters, meal delivery, as well as autonomous cars and flying taxis.

Uber rival Lyft reported higher losses in the Wednesday quarter, but maintained that the company was seeing "positive momentum" to help reduce losses for the rest of 2019.

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Source: https://www.thenews.com.pk/latest/510618-uber-shares-skid-as-quarterly-loss-soars

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