Icymi: Uber Narrows Loss Only Is A Long Mode From Finding Profit

From Reuters, Aug. 15:

Uber Technologies Inc. said on Midweek it narrowed its quarterly losses from a twelvemonth earlier, although the ride-hailing companionship is nevertheless a long agency from proving it tin flame survive profitable equally it gears upward to larn world inwards 2019.

Under the leadership of Dara Khosrowshahi, who became master copy executive inwards September, Uber has juggled investing inwards novel markets spell retreating from others where it was losing millions of dollars. It is edifice upward services similar nutrient delivery together with freight hauling equally it seeks novel revenue, together with peradventure a path to profitability, exterior its centre business.

Uber's cyberspace loss narrowed to $891 1000000 inwards its minute quarter ending June xxx from $1.1 billion a twelvemonth earlier. Its adjusted loss before interest, taxes, depreciation together with amortization was $614 million, downward from $773 1000000 a twelvemonth earlier.

Net revenue rose to a greater extent than rapidly than gross bookings inwards the minute quarter from the prior current equally the companionship dialed dorsum on promotional subsidies of rides.

But its increment faces risks from decisions similar that past times New York City this calendar month to cap licenses for ride-hailing services for i year. Uber has too had to deal alongside corporate scandals together with has lingering together with costly legal battles, including over its classification of drivers equally independent contractors, together with federal probes to resolve.

"I rest unimpressed," said Brent Goldfarb, associate professor of administration together with entrepreneurship at the University of Maryland. Improving losses past times cutting "the lowest hanging fruit doesn't hateful the underlying model is profitable."...MUCH MORE