Uber suffering the loss of $1 Billion
Uber Technologies Inc reported a $1 billion loss on Thursday as the company spent heavily to build up its food delivery and freight businesses, sending revenues up 20% in its first quarterly report as a public company. The delivery and freight costs went up 35% in the quarter, as the company spent heavily in the run-up to its IPO earlier this month.
Gross bookings, a measure of the total value of rides before driver costs and other expenses, rose 34% from a year ago to $14.6 billion. Meanwhile, Bookings were up 3.4% from the previous quarter, showing the difficulty of recruiting new riders in saturated markets. Revenue of $3.1 billion matched the high end of the range Uber forecast for the quarter and the loss of $1.0 billion compared with the company's forecast of $1.0 billion to $1.11 billion.