Uber loss tops $1bn loss ahead of planned IPO next year

Irving Hamilton
November 15, 2018

But it is under pressure to become more profitable for a planned offering of its shares to the public next year.

Uberhas reported a net loss of $1.07 billion in the third quarter as the company's growth continues to slow.

Uber posted a loss of $1.07bn (£821m) in the three months to September, as the ride-sharing firm prepares for a public stock offering next year.

"We had another strong quarter for a business of our size and global scope", Uber chief financial officer Nelson Chai said in a statement shared along with the earnings figures.

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.

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In 2017, Uber was growing at an average rate of nearly 14 pc a quarter.

It was the third quarter in a row that Uber's quarter-on-quarter bookings growth has remained in single digits after double-digit growth through the whole of 2017.

The ridesharing group previous year hired a new chief executive, Dara Khosrowshahi, who has vowed to fix the company's work culture and business practices after a series of missteps and scandals over executive misconduct, a toxic work atmosphere and potentially unethical competitive practices. Under the chief executive Dara Khosrowshahi, who took over from Kalanick, Uber has also retreated from some markets where it has suffered losses.

However, the company could be forced to merge with rivals in India and the Middle East. Uber and the India-based Ola are both backed by SoftBank which is Uber's biggest single shareholder with a 15% stake. That could create a mess for Uber's ownership structure and equity value, and pose regulatory problems.

Uber is considering moving its public debut up from the second half of 2019 to the first half, given concerns about a market downturn and an expected IPO from its chief USA rival, Lyft Inc, according to sources familiar with the matter. The business is doubling the number of loads it connects with truckers every quarter, Uber said.

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