Uber Loses Another $1.16B

Company says it will be making money by 2021
By Newser Editors and Wire Services
Posted Nov 5, 2019 12:30 AM CST
Uber Loses Another $1.16B
Jump electric bike share bicycles from Uber are seen along Mission Beach boardwalk in San Diego.   (AP Photo/Gregory Bull, File)

The losses at Uber are mounting, but the ride-hailing heavyweight now predicts it will be profitable in about two years. CEO Dara Khosrowshahi said Monday that the company's goal is to reach profitability—when adjusted for interest, taxes, depreciation, and amortization—for the full year of 2021, the AP reports. "We hope that we've shown you that we can execute against not just delivering top-line growth, but also top-line growth with discipline," Khosrowshahi said on a conference call with investors. "We can only do so with the really, really hard work of all our employees on a global basis, and also the partnership of the cities that we work with, and our drivers."

The San Francisco company picked up the pace of its revenue growth, racking up $3.81 billion in the third quarter, 30% more than the same time last year. Last quarter, revenue had grown 14% compared to the prior year. But Uber lost $1.16 billion in the quarter, extending its streak of losses. The third-quarter loss included $401 million in stock-based compensation related to its initial public offering. The loss amounted to 68 cents a share and was wider than the $986 million shortfall in the same period last year. Uber's stock price, which closed Monday at $31.08, has lost nearly a third of its value since its initial public offering in May. Last month, executives at Lyft said they expect the rival ride-hailing company to become profitable in the fourth quarter of 2021.

(More Uber stories.)

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