Uber is still burning cash at an alarming rate
0Reported today on TechSpot
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Uber is still burning cash at an alarming rate
Uber expects to be profitable by 2021
In context: Uber’s monthly active platform consumers (MAPCs), defined as the number of unique consumers who completed a ride or received an Eats meat at least once in a given month, climbed to 103 million for the quarter – up 26 percent from 82 million in the year-ago period.
Uber for the third quarter of 2019 reported revenue of $3.8 billion, an increase of 30 percent year-over-year, as gross bookings climbed 29 percent to $16.5 billion. Trips were also on the rise, from 1.3 billion in the year-ago period to 1.8 billion through the three-month period ending September 30 – an increase of 31 percent.
Despite the growth, however, Uber is still hemorrhaging money at an alarming rate. The company posted a net loss of $1.2 billion for the quarter, or roughly 18 percent more than it burned during the same period in 2018. That’s the third largest loss for Uber since the company started reported earnings in 2017 according to The Wall Street Journal.
Uber CEO Dara Khosrowshahi said in an interview after the earnings release that his company expects to reach adjusted EBITDA profitability in 2021.
Even still, Uber’s shareholders aren’t responding to the news favorably. As of writing, the stock is down 8.77 percent to $28.36 after closing at $31.08 yesterday afternoon.