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Uber losses top $1 billion on road to IPO

Uber continues to bleed money as it races toward a much-hyped public offering next year.Uber said Wed...

Posted: Nov 15, 2018 6:09 AM
Updated: Nov 15, 2018 6:09 AM

Uber continues to bleed money as it races toward a much-hyped public offering next year.

Uber said Wednesday that it lost $1.07 billion in the three months ending in September, up from an $891 million loss in the quarter prior, as the company invests in newer services ranging from food deliveries to scooters, according to a copy of the financials provided to CNN Business.

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Yet the spike in losses came as Uber's sales remained largely flat for the period. The ride-hailing company posted sales of $2.95 billion for the quarter, up about 5% from the prior quarter and an increase of more than a third from the same period a year earlier.

The latest results highlight the challenge Uber faces in trying to simultaneously manage its sizable losses while showing the kind of rapid sales growth that investors look for from a newly public technology company. Uber has repeatedly said it expects to go public in 2019.

Wall Street expectations may be particularly high for Uber. It is valued at around $70 billion on the private market, making it the most highly valued US startup. It could reportedly fetch a valuation of as high as $120 billion in its IPO next year.

"As we look ahead to an IPO and beyond, we are investing in future growth across our platform, including in food, freight, electric bikes and scooters," Nelson Chai, Uber's recently hired CFO, said in a statement with the results.

Like its chief US rival Lyft, Uber has jumped on the electric scooter trend in recent months. Uber launched fleets of electric scooters in Los Angeles and Austin, with more cities to come.

In its latest earnings release, Uber highlighted strong growth in its food delivery service, Uber Eats. Gross bookings for the service topped $2 billion for the quarter, a jump of more than 150% from the same period a year earlier. Last month, the company announced that Uber Eats would expand to cover 70% of the US population by the end of this year.

At a tech conference this week, Uber CEO Dara Khosrowshahi said he believes the company is "uniquely positioned" to build services that address a wide range of needs, beyond just hailing a ride.

"We can be your everyday Uber service, your everyday eating service in terms of breakfast, lunch dinner, and I think we can play a very big part in how freight is moved around this country and hopefully internationally as well," he said. "Each of those are enormous, trillion-plus dollar opportunities."

At the same time, Uber continues to play up its global ambitions. Chai says Uber invested in "high-potential markets in India and the Middle East where we continue to solidify our leadership position."

However, Uber has also ceded its business in Southeast Asia and Russia. And the company is facing scrutiny over its business relationship with the Saudi government in the wake of the killing of journalist Jamal Khashoggi.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 248189

Reported Deaths: 5411
CountyCasesDeaths
DeSoto16841171
Hinds15890312
Harrison13037191
Rankin10439205
Jackson10128177
Lee8721135
Madison8071160
Jones6166108
Forrest5870117
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Lamar475363
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Union337457
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Lincoln293385
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Tate266659
Alcorn260651
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Pike258176
Hancock253557
Prentiss242450
Scott241043
Yazoo237754
Copiah237449
Tippah236246
Simpson232367
Leake227864
Coahoma223154
Grenada215770
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Marion206171
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George197438
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Holmes167867
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Clay156732
Stone140218
Tallahatchie138234
Clarke136460
Calhoun133321
Smith118823
Yalobusha113834
Walthall111136
Noxubee109622
Greene108929
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Carroll103721
Lawrence101217
Perry99131
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Webster90624
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Tunica84521
Jefferson Davis83825
Humphreys81524
Benton80323
Kemper75720
Quitman6758
Franklin65315
Choctaw59613
Wilkinson58125
Jefferson53019
Sharkey42417
Issaquena1586
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Alabama Coronavirus Cases

Cases: 417528

Reported Deaths: 6030
CountyCasesDeaths
Jefferson61313888
Mobile29768542
Madison26637185
Tuscaloosa20580268
Montgomery18696304
Shelby18310113
Baldwin16002179
Lee12261101
Morgan12093112
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Walker5852174
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Escambia312442
Dallas300296
Clarke278233
Chambers277869
Tallapoosa2599107
Pike245829
Marion240549
Lawrence240447
Winston223835
Bibb213047
Geneva197431
Marengo197329
Pickens195231
Hale173742
Barbour171236
Butler167958
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Cherokee159630
Henry151119
Monroe144417
Randolph138535
Washington136526
Clay125246
Crenshaw118044
Lamar116619
Cleburne116023
Macon113335
Lowndes108735
Wilcox101221
Bullock98128
Perry95419
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