Uber has released its first-quarter report and it shows that the ride-hailing firm is bleeding. It lost more than $1bn in the first three months of the year.
Releasing its first quarterly report since it became a public company, Uber said it now had 93 million customers who are active on a monthly basis, 33% higher than the same period last year. The company’s revenues were $3.1bn for the three months, 20% higher but slower than the 25% annual growth Uber recorded in the prior quarter.
The company is spending heavily as it attempts to grow its market and head off rivals including Lyft, which is also lost billions of dollars. Investors and even the company – have worried that Uber may never make a profit.
Uber had clearly signalled to investors that its losses would be large over the quarter ahead of its poorly received share sale on 10 May. Uber’s shares rose marginally in after-hours trading but are still well below the initial price it set for the share sale earlier this month.
“Earlier this month we took the important step of becoming a public company, and we are now focused on executing our strategy to become a one-stop shop for local transportation and commerce. In the first quarter, engagement across our platform was higher than ever, with an average of 17m trips per day and an annualized gross bookings run-rate of $59bn,” said Dara Khosrowshahi, Uber’s chief executive officer.
Uber is expanding into food delivery, Uber Eats, and freight, Uber Freight, but faces stiff competition in those areas too. At the same time, ride-sharing companies are under pressure to increase wages for drivers, who have gone on strike in many cities complaining of poverty wages.
Uber’s hotly anticipated share sale got off to a miserable start. Wall Street investors seemed less than enamoured of the company’s years of huge losses and Uber was forced to cut the price of its initial public offering (IPO) before going public on 10 May.
The IPO itself stalled with Uber’s shares recording the largest ever first-day loss for a US company – $655m. Its share price has recovered somewhat in recent weeks and on Thursday ended the day at $39.76, though still well below their $45 IPO price.
