In their first earnings report after they filed their record-breaking-but-not-in-a-good-way IPO earlier this month, Uber released a first-quarter earnings report that showed they had another staggering loss of $1 billion for the quarter.
Uber's First Earnings Report as a Public Company Shows $1 Billion Loss for 1Q
Uber released its first earnings report as a public company today, revealing that the company lost another $1 billion in the first quarter, adding to a deepening hole of losses even as its revenue increased by 34%, to $3.1 billion, driven in large part by 89% revenue growth in Uber Eats, generating $536 million in the first quarter.
The growth of Uber Eats underscores the problem for Uber going forward though, as the payouts Uber Eats makes to restaurants and drivers means it brings in less money than it pays out, with investors having to make up the difference. Its rideshare business, meanwhile, saw a 10% growth in net revenue over last year's 1Q, but it still struggles to get ahead of its costs.
"Earlier this month we took the important step of becoming a public company," said Dara Khosrowshahi, CEO of Uber Technologies, in a statement accompanying the earnings report, "and we are now focused on executing our strategy to become a one-stop shop for local transportation and commerce. In the first quarter, engagement across our platform was higher than ever, with an average of 17 million trips per day and an annualized gross bookings run-rate of $59 billion. Our global reach continues to be an important differentiator, and we maintained leadership of the ridesharing category in every region we serve."
While this might be true, it is still becoming unavoidable that Uber has a problem making money, as does ride-share rival Lyft, so leading in a category that doesn't make any money isn't necessarily a good thing, it just might make your investors the biggest losers in the end.