Uber loses $7 billion in three months, after disappointing Wall Street debut

Ride-hailing driver pretends to be passenger's boyfriend to save her from a harasser

Food delivery Uber Eats grew 72% to $595 million.

Its adjusted net loss, after accounting for the stock compensation, insurance change and other expenses, widened to $197.3 million, from the $176.5 million adjusted net loss it posted during the same quarter previous year.

Lyft, on the other hand, reported Wednesday better-than-anticipated revenue growth and other positive metrics, despite a $644 million loss for the quarter.

Uber's revenues rose 14% to $3.17bn in the second quarter, below analysts' expectations of $3.3bn and the smallest percentage on record. Analysts surveyed by FactSet expected a loss of $2.03 per share on revenue of $3.31 billion, on average, but those analysts typically exclude one-time expenses such as IPO-related costs.

Uber stock had risen more than 8% and Lyft had gained 3% during the day.

Uber shares dropped 5% in after-hours trading to $40.63.

Uber continued to spend heavily on sales and marketing, which includes costly promotions created to attract riders and drivers.

Manchester United finalise $112 million sale of Romelu Lukaku to Inter Milan
Juventus striker Mario Mandzukic remains an option for Ole Gunnar Solskjaer if Lukaku leaves before Thursday's transfer deadline. Lukaku had been in Belgium since Monday and travelled to Milan on Wednesday evening to undergo a medical and seal the move.

Gross bookings, a measure of total value of auto rides, scooter and bicycle trips, food deliveries and other services before payments to drivers, restaurants and other expenses, rose 31% from a year earlier to $15.76 billion. Gross bookings increased 31 percent year-over-year to $15.8 billion.

"Uber has turned into the magical money burning machine".

Chief Executive Officer Dara Khosrowshahi said in a press call the competitive environment was starting to rationalize and had been "progressively improving" since the first quarter.

Revenues are rising in part due to a cooling price war with rival Lyft, as both companies prioritize profitability over growth and spend less on incentives to attract riders to their apps. It raised its revenue outlook.

"While we will continue to invest aggressively in growth, we also want it to be healthy growth, and this quarter we made good progress in that direction", said Nelson Chai, chief financial officer.

More than a third of the loss, or $296.6 million, came from stock-based compensation Lyft paid out after its initial public offering in March. The company completed 1.68bn rides and delivery trips over the quarter, better than the 1.65bn predicted by analysts. But the company also said it laid off 400 members of its global marketing team this summer - about a third of its communications staff. Uber also faced stiff competition in Latin America, where its reported revenue fell by almost a quarter compared with the same period a year ago.

Related News:

  • The Ducktales Remastered Is Going to Be Removed from the Stores

    The Ducktales Remastered Is Going to Be Removed from the Stores

    Even with the game about to go poof, this is an opportunity to experience this game if you've never played it before. DuckTales: Remastered is now available for the PS3, PC, Wii U , Xbox 360 , and Xbox One via backward compatibility.
    WTI Crude Oil Forecast: Will Find Support

    WTI Crude Oil Forecast: Will Find Support

    President Donald Trump said he would slap a 10% tariff on a further $300 billion in Chinese imports from September 1. Brent crude futures were down $1.04 (1.75%) at $57.90 a barrel by 1251 GMT, setting a fresh seven-month low.

    Xiaomi to bring world’s first 108MP camera smartphone

    Xiaomi doesn't want to stop there and is keen on introducing more advanced camera technology into their smartphones. Xiaomi has also tweeted that it is working on a 100MP camera flagship phone, which will follow the 64MP technology.
  • Arsenal legend Ian Wright says Koscielny 'should be ashamed'

    Arsenal legend Ian Wright says Koscielny 'should be ashamed'

    My decision to leave has been discussed for months with my club, my teammates, my coach, and it has been a well-thought decision. In the short clip, Koscielny is seen wearing a Gunners shirt before taking it off to reveal his new Bordeaux kit underneath.
    Foldable iPhone Could Gain Ground If Display Technology Improves In Coming Years

    Foldable iPhone Could Gain Ground If Display Technology Improves In Coming Years

    Shipments in Q2 for the company were down less than 1% in Q2 with market share rising to 18%, up 2% from a year earlier. In the U.S. , a very strong iPhone market, Apple users experienced download speeds 8.2Mbps slower than Samsung users.
    Dozens released after massive Mississippi immigration raids

    Dozens released after massive Mississippi immigration raids

    In Morton, workers were loaded into multiple buses on Wednesday -some for men and some for women - at the Koch Foods plant. It's unclear whether the raids were intentionally scheduled for the same day as Trump's visit to El Paso. "U.S.
  • Prince William and Kate go head to head at King's Cup regatta

    Prince William and Kate go head to head at King's Cup regatta

    With their eldest children, Prince George and Princess Charlotte , cheering them on , the sporty parents took to the water. Kate looked lovely in her casual-cool outfit matching everyone else in a polo T-shirt, a pair of navy shorts and trainers.
    Federal Bureau of Investigation  probes domestic terrorism in California festival shooting

    Federal Bureau of Investigation probes domestic terrorism in California festival shooting

    Before the service Tuesday, friends and family members used colored markers to write messages on the casket of Keyla Salazar. Three people were killed in the shooting , including a 6-year-old boy, a 13-year-old girl and a man in his 20s.
    LeBron James, Kevin Hart & More React To NCAA's

    LeBron James, Kevin Hart & More React To NCAA's "Rich Paul Rule"

    Per the new NCAA rule, Paul is not eligible to advise NCAA players who wish to maintain their college eligibility. It will be interesting to see how Paul and Klutch respond to this new rule.
  • Serena reaches Rogers Cup quarters in Toronto

    Serena reaches Rogers Cup quarters in Toronto

    The 25-year-old tennis pro lost 4-6, 6-1, 6-4, in the first round to Andreescu. "And this time off actually helped me". Open champion Naomi Osaka , which would be their first encounter since last year's controversial NY final.
    Redmi Note 7 Pro gets discounted in Flipkart sale

    Redmi Note 7 Pro gets discounted in Flipkart sale

    "Our core goal is to move on toward ultra-sharp cameras on Xiaomi smartphones", said Lin Bin, co-founder and president of Xiaomi. Qualcomm has also indicated that it will support higher resolution sensors, including ones with 64MP and 108MP resolution.
    Google Pixel 3 glitch causes weird clicking noises and shaky video

    Google Pixel 3 glitch causes weird clicking noises and shaky video

    Talking about the camera sensor firstly, the Pixel devices would be featuring a dual camera set up on the back. She can be found reading fanfiction and manga while still waiting for her Hogwarts acceptance letter.


Most liked

'HE WAS PANICKED': Actor Danny Trejo rescues boy trapped in overturned car
The Los Angeles Fire Department says three people were taken to a hospital, and there were no life-threatening injuries. Assessing the damage to the flipped auto , Trejo said there's a good chance the child's vehicle seat saved his life.

Realme 5 is set to launch in China on August 15
In fact, Realme has scheduled an event for August 8 in Delhi to talk more about this camera package and how it was put together. The Realme images show better colours, more details, better shadow and accurate description.

AT&T Employees Took Bribes To Unlock Millions Of Phones
Some early employees were also paid to discover others within AT&T who would be susceptible to a bribe and could join the scheme. Initially, the two Pakistani men bribed AT&T employees to unlock expensive iPhones so they could be used outside AT&T's network.

Labour 'stumbling block' in achieving alliance to stop Tories, says Sturgeon
It has now been claimed that this statement, which was issued to the Daily Record newspaper, had not been approved by Mr Leonard. The senior Labour frontbencher said he was "extremely worried" about new Prime Minister Boris Johnson .

Woods near last after opening 75 at Northern Trust
Woods practiced with Brooks Koepka , Dustin Johnson and Harold Varner on Tuesday. Woods entered this week's event ranked 28th on the FedEx Cup rankings.

The new Federation Internationale de Football Association 20 VOLTA trailer is released and it looks sensational
Despite featuring smaller teams, Volta has more in common with the full 11-a-side game than any of the games in the Street series. Indeed, all of the new gameplay additions and tweaks being introduced to the core game can be felt when playing Volta.

Arsenal agree Sh1.8 billion deal for Chelsea defender
Celtic boss Lennon hopes that he will be allowed to reinvest Tierney's record £25million transfer fee. It's expected that the player will sign a five-year deal worth £75,000 per week at The Emirates.

Gang member kills 4 in random California stabbings
At that point the SAPD got involved as their police officers made contact with the suspect and finally arrested him. The motive in at least some of the attacks was believed to be robbery, but police are still investigating, he said.

Samsung releases new flagship Galaxy Note 10 phones
Making your phone's screen available to you on your PC, so you wouldn't need to keep switching between your phone and PC. The smaller, 6.3-inch version will be called the Note 10 and will sell for nearly $950, or $150 less than the Plus.

Nadal beats Evans in Rogers Cup opener
Nadal advanced after two hours of play but because of rain it took nearly four and a half hours after the first ball was struck. Auger-Aliassime got a walkover win against his compatriot last June on grass in Stuttgart when Raonic suffered a back injury.

Rolls-Royce on track, forecasts cash improvement
Rolls-Royce financial results noted its £433 million inventory included a £100 million contingency for a no-deal Brexit. He said: We delivered further progress across the group in the first half in line with our full year expectations.

Biden rips Trump: 'This president has fanned the flames of white supremacy'
I sense that those ineffective candidates are still in the race to promote themselves for other non-presidential elections. Biden was expected to invoke the rhetoric of previous Republican and Democratic presidents, including Republican George W.

Taiwan Orders Markets, Schools Closed on Friday as Super Typhoon Approaches
Rail authorities suspended some train services in Yilan, affecting thousands of passengers. The quake struck at 5.28am at a depth of 10km in north-eastern Yilan county.

Anglo-Irish relations ‘would fundamentally change in no-deal Brexit scenario’
He said he hoped to conclude a new trade deal with the U.S. "as soon as possible after we leave the European Union on October 31". Pompeo gave the clearest signal to date that the Trump administration is eager to make a deal.

A 5G smartphone from OnePlus is coming to Sprint
Toss in that 90Hz screen and you should definitely expect shorter endurance in theory than the 4G-enabled OnePlus 7 Pro . It did not give a date or a price for the service, but this would be OnePlus' second collaboration with a US carrier.