Uber Technologies Inc reported a record US$5.2 billion loss and revenue that fell short of Wall Street targets on Thursday as growth in its core ride-hailing business slowed, sending its shares down 6 per cent.[BENGALURU] Uber Technologies Inc reported a record US$5.2 billion loss and revenue that fell short of Wall Street targets on Thursday as growth in its core ride-hailing business slowed, sending its shares down 6 per cent.
Uber's second-quarter net loss, widening from a loss of US$878 million a year earlier, included US$3.9 billion of stock-based compensation expenses related to its IPO earlier this year and nearly US$300 million in"driver appreciation" related to the stock sale.The report caught investors off guard in part because Uber's smaller rival Lyft Inc on Wednesday had raised revenue expectations and described an easing price war.
At the same time, Uber is keeping less money per car ride. The amount passengers spent on trips rose 20 per cent while the amount Uber kept after paying its drivers increased just 4 per cent. Uber's costs rose 147 per cent to US$8.65 billion in the quarter, including a sharp rise in spending for research and development.