Economy

Uber revenue slows as quarterly loss surges to $1.1 billion

Uber revenue slows as quarterly loss surges to $1.1 billion

Uber stomached a $1 billion loss in its third quarter and saw a continued trend of slow growth for its ride-share bookings, Reuters News reported.

The San Francisco company lost just over $1 billion from July through September, compared with an $891 million loss in the second quarter.

Adjusted loss before interest, taxes, depreciation and amortization was US$592 million, down from US$614 million in the previous quarter and US$1.02 billion a year ago.

"As we look ahead to an IPO and beyond, we are investing in future growth across our platform, including food, freight, electric bikes and scooters", he said in a statement.

The third quarter, ending September 30, marked the third straight quarter that booking growth was in the single digits, according to the news service.

Faced with this slowdown in its decade-old ride-hailing business, Uber is accelerating its expansion into food delivery, called Uber Eats, along with freight hauling and electric bikes and scooters.

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Revenue for the quarter was US$2.95 billion, a 5 percent boost from the previous quarter and up 38 percent from a year ago. Gross bookings - the amount before paying drivers - rose 34 percent, to $12.7 billion. On either metric, the loss was about 20 percent higher than Uber's loss in the second quarter.

As a private company, Uber is not required to publicly disclose financials, but a year ago started releasing selected figures. In 2017, Uber sustained double-digit growth quarter-over-quarter, and since the start of 2018, the bookings growth went into the single digit.

He has been a technology writer since more than five years.

Japan's Softbank has taken a 15% stake in Uber in a deal which foresees an initial public offering by Uber next year.

Uber is considering moving its public debut up from the second half of 2019 to the first half, given concerns about a market downturn and an expected IPO from its chief USA rival Lyft, according to Reuters sources. It is also unclear how Uber will fare in a shakeout of the crowded global food-delivery industry, and whether its freight business will be widely adopted by fleet managers.