Uber has reported a net loss of $1.2 billion in the third quarter, which is quite less than the company’s last quarter deficit. Uber witnessed a severe loss of $5.2 billion in just four months. The loss of around $3.9 billion has been attributed to its stock-based payments related to the company’s public offering. Uber saw a jaw-dropping loss in the second quarter beating analysts’ assumption. As per the company, it spent $3.8 billion in revenue in the last four months. Gross booking and other fees and discounts increased to $16.6 billion, which showed 29 percent year over year growth. As per the latest reports, the ride-sharing firm is immensely under pressure to rein in costs. It has also started slashing away staff. Around 1000 employees have been chucked out of the company over the second quarter.
There is an increasing pressure on Uber from investors to stabilize its losses and fetch the profit. The company’s rival Lyft has reported shrinking loses and much better growth after 1 year of its public offering. Uber has also reported a 30 percent growth in its revenue. The valuation of the company decreased enormously since it had been listed in the stock market at $45 in May. Uber’s stock prices fell to 5 percent after the company reported its third consecutive loss crossing $1 billion. The company has also prevented its employee to sell off their stocks. This locking period is expected to end soon. After the Company’s employee lock-up period ends, nearly 40 percent of the firm’s capitalization is expected to be at stake.
North America is still Uber’s biggest growth market. The revenue of the company increased by 39 percent in North America, which is higher than the third quarter of 2018. The company’s reward program for riders has also reached 20 million members. To merge its ride-hailing and food delivery section, Uber Eats, the company has gone into complete overhauling of its app. This change is expected to include new safety features and boost alternatives to travel like bikes, scooters, and public transportation. The company is not leaving any stone unturned to become the sole operating system of people’s everyday life.