Home / World / Uber Lost $1 Billion In 1st Quarter, Hopes Profit-Slashing Price Cuts Ease Up Soon : NPR

Uber Lost $1 Billion In 1st Quarter, Hopes Profit-Slashing Price Cuts Ease Up Soon : NPR



Uber CEO Dara Khosrowshahi says he hopes Uber and Lyft are easing their battle of price cuts soon.

Richard Drew / AP


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Richard Drew / AP

Uber CEO Dara Khosrowshahi says he hopes Uber and Lyft are easing their battle of price cuts soon.

Richard Drew / AP

For most companies, losing $ 1 billion in a quarter would be a big disappointment. But Uber's first report as a publicly traded company was actually better than it had warned investors to wait.

The transport and food delivery giant generated more than $ 3 billion in revenue in the first three months of 2019, an increase of 20% over the same quarter of the previous year.

Before going public earlier this month, Uber had told investors to be prepared for an even larger loss in the first quarter. Now, he is telling them that he expects the competition for the price cut that has affected his profits to ease soon.

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Uber has spent money for years spending a lot on growth, offering financial incentives to attract new drivers and drivers, and baduming the costs of expanding into new markets around the world. So far, that growth has never translated into profits.

Uber's IPO did not go well. Although the prices of its shares are relatively conservative, at least compared to initial expectations, the company experienced a fall in its shares immediately and ended the first day below what it started. Since then, Uber shares have never been sold at the value established for the initial offer.

Wall Street liked what it saw in Uber's first earnings report. Its shares rose more than 1% in the first operations on Friday.

Uber drivers are not employees, the rules of the National Relations Board. The drivers saw it coming

Uber's earnings report shows that the company continues to expand rapidly, especially at Uber Eats, its food delivery branch. However, in South America, the company saw revenues shrink as it faced intense competition from rival Didi.

In the US, meanwhile, Uber faces its smaller competitor, Lyft.

Throughout the world, competition in road transport is lowering prices and contributing to Uber's losses. At Thursday's earnings meeting, Uber CEO Dara Khosrowshahi said he expects Uber and Lyft, at least, to be easing their battle of price cuts soon.

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"The competition is going to be healthier," he said. "It will be based on the brand, the product and the technology, which we believe is the right way to compete, instead of throwing money at the problem."

He also acknowledged that Uber has faced headwinds in the United States due in part to the tremendous damage to the brand in recent years, marked by accusations of badual harbadment, reports of illegal business practices, data breaches and other scandals.


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