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Uber Technologies, a US alternative taxi company, lost a record $ 5.2 billion this year, despite the price war in the sector softening. However, it is slowing down the development of Uber's core sector, an alternative taxi service. Shares in the foreign trading company fell six percent in response.
The loss increased $ 878 million year-over-year, but includes $ 3.9 billion in costs associated with the Uber stock market. Without the impact of the primary public offering (IPO), the loss would be $ 1.3 billion. These results were in line with analysts' estimates in the S&P Global Market Survey, while the company's revenue rose 14 percent to $ 3.2 billion and fell behind the expected $ 3.4 billion.
Uber's revenue from alternative taxis in the quarter grew only 2 percent to $ 2.3 billion, while food delivery grew 72 percent to $ 595 million.
The company said the price of war in the U.S., which has been making Uber and its rivals in the red for a long time, is moderating. However, slowing revenue growth raises questions about whether a company is able to expand and discourage competition.
CEO Dara Khosrowshahi said the competitive environment is starting to rationalize and has been "gradually improving" since the first quarter. This year the peak of investment is expected and in the next two years, according to him, losses should start to decline.
"Losses are increasing and competition is limited. What hinders investor confidence and has a strong impact on shares after this report is the absence of a clear path to revenue growth and cost reduction," said Haring Anwar, platform analyst at Investing.com.
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