Growth Slows For Uber With $1 Billion Loss, Report Says


On an earnings before interest, taxes, depreciation and amortization basis (EBIDTA), Uber's losses were $527 million, up about 21 percent quarter over quarter.

"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, and high-potential markets in India and the Middle East".

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 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. The quarterly revenue was $2.95 billion, a 5 percent jump from the previous quarter and 38 percent rise from a year ago.

But broader economic conditions and sustained losses could push Uber to merge with rivals in India and the Middle East, particularly as Uber and India-based Ola share an investor in SoftBank Group Corp. That trailed the second-quarter year-over-year revenue increase of 63 percent.

The privately held Uber isn't required to publicly disclose financial results, but it began releasing selected numbers a year ago. Gross bookings - the amount before paying drivers - rose 34 percent, to $12.7 billion.

Uber, for the first time, has also broken out Eats specific gross bookings, which the company says accounted for $2.1 billion of overall gross bookings and is growing over 150 percent year over 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 ploughed the savings back into its freight-hauling, food-delivery, and electric scooter and bikes businesses.

But it is not yet clear whether either business can sustain a profit.