Uber takes $1B in losses
by Kyle Ziemnick
Posted 5/31/19, 10:54 am
The ride-sharing company Uber posted $1 billion in losses during the first quarter of 2019, despite gaining 20 percent in revenue over last year’s first quarter, in its first financial report since going public three weeks ago. The huge loss is attributed to an uptick in spending to remain competitive in the ride-sharing marketplace. Uber and Lyft are trying to become the go-to companies around the world amid increasing regulations and high demand. Uber’s ultimate goal is to become “a one-stop-shop for the movement of people and powering local commerce around the world at a massive scale,” CEO Dara Khosrowshahi said in a call with investors. Uber Eats, the ride-sharing company’s food delivery service, saw an 89 percent increase in revenue over last year following aggressive advertising in concert with McDonald’s and other restaurants.
Uber still needs to find a way to overcome regulations in places like New York, which capped the number of Uber drivers operating in the city in the past year. San Francisco considered an Uber tax in April after determining that roughly 50 percent of downtown rush hour congestion came from ride-sharing companies.
Read more from The Sift Sign up for The Sift email
Kyle is a graduate of the World Journalism Institute.