Uber has increased the loss of up to 1 billion

Lloyd Doyle
November 17, 2018

The popular ride-hailing company Uber has reported over a $1 billion loss in its third quarter.

On an earnings before interest, taxes, depreciation and amortization basis (EBIDTA), Uber's losses were $527 million, up about 21 percent quarter over quarter.

He emphasised the importance of "high-potential markets in India and the Middle East where we continue to solidify our position".

While continuing to bleed money, Uber reported revenue of $2.95 billion in the quarter, up 38 percent from the same quarter past year.

Faced with this slowdown in its decade-old ride-hailing business, Uber is accelerating its expansion into food delivery, called Uber Eats, along with freight hauling and electric bikes and scooters. The food delivery business generated $2.1 billion in gross bookings in the quarter and now represents 17 percent of Uber's $12.7 billion in gross bookings for the quarter, a jump of 150 percent from a year ago.

However, the company could be forced to merge with rivals in India and the Middle East. Uber and the India-based Ola are both backed by SoftBank which is Uber's biggest single shareholder with a 15% stake. That trailed the second-quarter year-over-year revenue increase of 63 percent.

Uber previous year made a decision to share selected financial figures publicly.

Bookings growth slid into the single digits on a quarterly basis at the start of this year, Reuters said. Under the chief executive Dara Khosrowshahi, who took over from Kalanick, Uber has also retreated from some markets where it has suffered losses. The business is doubling the number of loads it connects with truckers every quarter, Uber said.

Some reports suggest that the global ridesharing giant is considering speeding up its plans for an initial public offering to the first half of 2019, rather than the second half of the year.

But it is not yet clear whether either business can sustain a profit.

Other reports by Iphone Fresh

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