Despite Its Over 100 Million Users, Uber Has Still Lost Money

According to the latest report of the US ridesharing company Uber, it has kept developing powerfully. This is clearly shown via its quarterly earnings. Last month, over 100 users chose to use the company’s services. This impressive number marked the highest monthly milestone during its operations.

There was a 35 percent increase in trips, hitting 1.67 billion in the second quarter of this year compared with 2018. In addition, its revenue significantly rose, up to $3.17 billion. There was a 14 percent surge YOY. However, the indicator, in fact, was still lower than $3.36 billion – the initially expected number. Its growth also didn’t meet the previous expectations.

When it comes to the net earnings, Uber Eats must contribute to enhancing the company’s achievement in the previous quarter.  The online food delivery platform managed to attract a great number of new customers. Compared to the second quarter of last year, the number of customers who used this service in Quarter 2 2019 increased by up to 140 percent. According to the company’s statement,

The net loss of Uber in the latest quarter reached $5.24 billion. However, the figure didn’t seem as bad as many think. Up to $3.9 billion out of the above net loss hailed from stock-based awards the company paid its employees according to its Initial Public Offering (IPO) in May. Besides, Uber spent $298 million on “driver appreciation award” concerning the IPO. The company reportedly lost more than $1 billion in the second quarter.

Uber’s rival, Lyft also just revealed its earnings a few days ago. Accordingly, the transportation network company reached $867.3 million in its quarterly revenue, increasing by 72 percent YOY. As such, Lyft lost up to $644.2 million. During the latest three months, the number of its active riders has hit 21.8 million. Each of these riders earned about $39.77, which rose from $1.91 per rider compared with the previous quarter.