Uber shares skidded Monday after the ride-hailing giant reported widening losses in the just-ended quarter as it boosted investment in new services .
San Francisco-based Uber reported a loss of $1.2 billion, up from a loss of $986 million a year ago.
Uber revenue was up 30 percent to $3.8 billion in the quarter on growth in its shared rides service as well as its Eats restaurant meal delivery service and its Freight platform that matches shippers with truckers.
“Our results this quarter decisively demonstrate the growing profitability of our Rides segment,” said Uber chief executive Dara Khosrowshahi.
The number of people using Uber’s platform monthly grew 26 percent to 103 million, while the number of trips taken by riders rose 31 percent to nearly 1.8 billion, according to the earnings report.
Uber shares were down more than five percent in after-market trade that followed release of the earnings figures.
Some of the downward pressure on Uber’s stock price could be due to concerns about what will happen when a “lock-up” period preventing early investors, founders and employees from selling shares ends Wednesday.
“There is a lot of supply that is going to hit the marketplace, so you don’t know what is really going to happen,” Uber chief financial officer Nelson Chai said of shares being unlocked.
Chai and Khosrowshahi said on an earnings call that they felt Uber was on a road to
be profitable by the end of 2021.
“We don’t think there is a big, magic bullet,” Chai said.
“We will just continue to grind it out quarter after quarter.”
The company is moving to broaden its offering beyond traditional ridesharing into services ranging from scooters and electric bikes to a planned “flying car” operation.
Khosrowshahi has said he wants Uber to be a versatile app that becomes “the operating system for your everyday life.”
Revenue taken in at Eats restaurant meal delivery service grew 64 percent, while Freight revenue was up 78 percent, according to Uber.
Uber recently agreed to take a majority stake in ..
The law challenges the business model of the rideshare platforms and others which depend on workers taking on “gigs” as independent contractors.
Uber has said it has no plans to immediately reclassify drivers as employees in January, when the law takes effect.