Uber shares spike as company says it will reach a key profitability goal sooner than expected

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“We think you should price based on service, not price just to discount.” Uber CEO Dara Khosrowshahi speaks with andrewrsorkin about pricing, safety and reaching profitability.

stock rose in extended trading on Thursday after the company announced a fourth-quarter loss that was narrower than analysts had expected and moved its EBITDA profitability forecast forward.

Uber's top segment, Rides, including ride-sharing services and fees from drivers, delivered $13.51 billion in gross bookings, up 18% and below the $13.60 billion estimate among analysts polled by FactSet. The company is also promoting lower-cost rides on its platform, including on JUMP dockless and electric bikes. JUMP recently expanded to Australia, New Zealand and Washington D.C.

Eats referrals and incentives for drivers cost Uber $1.13 billion in 2019, and $319 million in Q4 alone, according to the filing. Rides driver referrals and excess driver incentives cost Uber $123 million in 2019, with $20 million of that in Q4, the filing said.

 

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andrewrsorkin Interesting

andrewrsorkin You mean don’t compete on price? Sounds like Uber indirectly promoting collusion, hint hint, wink wink. You’ve just told Lyft how to beat uber - lower prices further (competition). How about doing both, pricing and service? veojoby tesla lyft arkinvest elonmusk tesla

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