Uber Suffers a loss of 1 Billion dollars in the first Quarter. Uber suffered a loss of 1 billion dollars in the first quarter. A year earlier, the company then made a profit of a 3.7 billion dollar profit.
Uber reports this in its first quarterly report as a listed company.
The fact that Uber is so loss-making is due to the many investments that the company makes.
The tech company behind the popular taxi app puts a lot of money into the development of self-driving cars.
Not too long ago, more than 3 billion dollars was put on the table for the takeover of rival Careem Networks FZ from Dubai.
It would have been a substantial loss year ago if it were not for Uber to drag in a lot of money by selling assets.
Viewed on an operational basis, the loss more than doubled.
Uber has nevertheless grown rapidly.
The quarterly turnover increased from 2.6 billion to 3.1 billion dollars.
These are final figures because in its hundreds of pages document for the application for a listing at stock market regulator SEC in April,
the company already released preliminary statistics.
Now some more things have become known.
For example, it appears that sales in the United States and Canada increased substantially,
but that revenues in South America fell considerably.
According to financial director Nelson Chai, the results in the first quarter were at the top of the previously stated bandwidths.
He says he also sees signs that the price war with rivals in some countries is becoming less intense,
and expects that trend to continue in the second quarter.
He also emphasised that Uber will continue to invest heavily for the time being.
Uber’s long-awaited debut in New York on May 10 was not a success.
The stock fell sharply on the first trading day.
Investors did not seem very convinced of the good promises of the company that Uber will ever be suitable for a substantial profit margin.