Uber Reports Over $1 Billion In Losses For Q3
Uber reporting $1.1 billion dollars in losses for the third quarter may seem devastating, but its actually much less than in Q2, when they reported $5.2 billion in losses. The report beats Wall Street's expectations, which assumed the company would lose $1.5 billion.
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The ridesharing service's stock dropped 5% after the news of the fall was released. A big part of the loss, just over $400 million, is from stock compensation. Around this time last year, Uber posted a net loss of $986 million.
The company also beat a predicted loss per share of 81 cents when they reported only 68 cents. Their revenue was also slightly above estimates for Q3 at around $3.81 billion.
Since this time last year, Uber's operating segments, both Eats, and Rides have also grown. Rides grew 19% and Eats grew by 64%. Uber Freight is also up 78% since 2018. Compared to growth in previous years, CEO Dara Khosrowshahi says the company will now focus on efficiency and profitability.
"The focus really is to drive lower rates based on the best technology out there rather than driving the growth through discounting," said Khosrowshahi.