Uber loses $1bn in three months as growth slows

Uber chief executive Dara Khosrowshahi

Uber chief executive Dara Khosrowshahi

The reported loss is likely because the company is aiming to diversify its business and in doing that, it pumped money into bikes, scooters, freight and food delivery services.

"As we look forward to an IPO and past, we are putting resources into future development over our stage, incorporating into nourishment, cargo, electric bicycles and bikes, and high-potential markets in India and the Middle East where we keep on cementing our initiative position".

In the previous quarter, the smartphone-summoned ride service reported it lost $891 million on net revenue of $2.8 billion, with overall bookings of $12 billion.

Bookings growth slid into the single digits on a quarterly basis at the start of this year, Reuters said.

Its adjusted loss before interest, taxes, depreciation and amortisation was $592 million (about Rs. 4,270 crores), down from $614 million (approximately Rs. 4,400 crores) last quarter and $1.02 billion (about Rs. 7,400 crores) a year ago. Revenue for the quarter was $2.95 billion, a 5 percent boost from the previous quarter and up 38 percent from a year ago.

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Uber's latest financial report shows that losses in the Q3 have further expanded from that in Q2, which may not be good news for Uber, which is expected to be listed next year. Under the chief executive Dara Khosrowshahi, who took over from Kalanick, Uber has also retreated from some markets where it has suffered losses.

But Khosrowshahi has plowed the savings back into its freight-hauling, food-delivery, and electric scooter and bikes businesses.

Japan's Softbank has taken a 15% stake in Uber in a deal which foresees an initial public offering by Uber next year. That could create a mess for Uber's ownership structure and equity value, and pose regulatory problems.

As per report, Uber's growth in bookings for various services rose just six percent in the Q3, which is third quarter in a row for single digit growth from previous year. For the first time, Uber provided specific numbers for its UberEats business. Last month Uber announced it would expand its food delivery business to cover 70% of the USA population.

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