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Uber’s growth slowed as losses widen as they prepare IPO

Discussion in 'News' started by BurgerTiime, Nov 14, 2018.

  1. BurgerTiime

    BurgerTiime

    Location:
    Minneapolis
    Driving:
    Lyft
    https://www.cnbc.com/amp/2018/11/14/uber-earnings-q3-2018-self-reported.html
    [​IMG]
    Uber's losses ticked up to nearly $1 billion during the third quarter and annualized growth is continuing to slow, according to the private company's self-reported financials for Q3.

    The news comes ahead of the company's anticipated IPO next year, which some bankers are saying could value the company at $120 billion, well over its last reported private valuation of $62 billion. The company's slowing growth could be attributed to Uber's rapidly diversifying business, including expansion in its food delivery service, Uber Eats, and new transportation offerings like bikes and scooters.

    The numbers continues the slowing growth Uber has seen over the last two quarters. In Q2 Uber reported net revenue of $2.7 billion, up 51 percent from a year prior, and gross bookings of $12 billion, up 41 percent from a year prior.

    The company also broke out some figures for Uber Eats to the press for the first time, saying it accounted for $2.1 billion in gross bookings in Q3. That's an increase of 150 percent from the same quarter a year ago, Uber says.

    The company said its total costs and expenses were $3.7 billion in the third quarter, up from $3.5 billion in the prior quarter.

    Uber is rapidly expanding its food delivery business and is investing in new mobility offerings like bikes and e-scooters. Last month Uber announced it would expand its food delivery business to cover 70 percent of the U.S. population. CEO Dara Khosrowshahi told CNBC at the time that Uber Eats growth ultimately drives growth back to Uber's ride-hailing business.

    Uber CFO Nelson Chai told CNBC the company had another strong quarter for a business of its size and global scope. "As we look ahead to an IPO and beyond, we are investing in future growth across our platform, including in food, freight, electric bikes and scooters, and high-potential markets in India and the Middle East where we continue to solidify our leadership position," Chai said.

    As it heads towards an IPO next year, Uber wants investors to know it's more than ride-hailing, but some bankers say that could make it harder tovalue the company in an IPO.

    Here are the numbers:
    • Q3 revenue was $2.95 billion, up 38 percent from the same quarter last year.
    • Gross bookings, or the amount collected before payouts to drivers, came in at $12.7 billion, up 34 percent year over year.
    • Adjusted net loss widened in the third quarter to $939 million; it was $680 million in Q2.
    • Adjusted EBITDA loss for Q3 came in at $527 million, which is down 13 percent year over year, but up 24 percent since Q2.
    • Gross cash on hand decreased to $6.55 billion, down from $7.3 billion at the end of Q2.
     
    Last edited: Nov 14, 2018
    backstreets-trans and Ziplock like this.
  2. luckytown

    luckytown

    Location:
    northern nj
    Driving:
    UberX
    The company revenue is up 38%....but its losses grew because its investing in other business like eats and scooter etc....hard to see how they are doing in USA since they dont break out these numbers...what drivers care about which is pay is a needle in this enormous haystack....
     
    MoreTips, tohunt4me and BurgerTiime like this.
  3. Uber's Guber

    Uber's Guber

    Location:
    United States
    Driving:
    UberX
    Uber accountants are scrutinizing this item to more efficiently increase their profitability.
    In other words, get ready for another driver rate cut! :confused:
     
    MoreTips, tohunt4me and teh744 like this.
  4. uberdriverfornow

    uberdriverfornow

    Location:
    no
    the more they lose, the more they think they're worth
     
    FaaaUber, MoreTips, tohunt4me and 2 others like this.
  5. polar2017

    polar2017

    Location:
    NNJ
    The IPO will a life jacket.
    527 million net loss ebita.
    Can only imagine how the conversation goes in the executive board room.
    Dara gets message that SoftBank left 2 messages this morning. Dara responds to tell them scooters & bikes are going to be noted as our long term focus.
    SoftBank - Clark get in here. Dara is tossing poop on the walls again, scooters & bikes.
     
  6. Travis Alex

    Travis Alex

    Location:
    Boston
    You know, I find it interesting that Uber wants to invest so heavily into the scooter and bike rental market, when for some reason, I feel like they don't realize that there are parts of the country that have inclimate weather, making the renting of electric scooters quite difficult when it's 21 degrees outside and 8 inches of snow are on the way.

    See: All of the upper east coast metropolitan cities.
     
    MoreTips, tohunt4me and heynow321 like this.
  7. polar2017

    polar2017

    Location:
    NNJ
    One must ask what percent of the population wants to rent a scooter or bike. Maybe this is what the usa population needs & just does not know it yet.
    How many markets have an actual demand too.
     
    uberdriverfornow and tohunt4me like this.
  8. Drivincrazy

    Drivincrazy

    Location:
    Las Vegas, NV
    Driving:
    Lyft
    Uber has about 3,000,000 drivers world wide. Why would a company want to continually screw the faces of their brand? Forcing drivers into driving for losses, at times, seems really short-sighted. I'd rather have 3,000,000 happy drivers that double as ad people. Uber obviously took the hate the driver approach. The 180 days of change (not) is proof of that.
     
    Rakos, MoreTips and tohunt4me like this.
  9. SEAL Team 5

    SEAL Team 5

    Location:
    Phoenix
    Driving:
    Livery
    With the USPS losing another $2.7 billion this year I'm predicting by next year we will have Uber Postal.

    Hey, check out this. Drivers will now get an extra $.47 for delivering this month's issue of BIG 'UNS to some lonely pervert.
    image.jpg
     
  10. You should see all our beautiful brand new bike lanes that are empty 7 months out of the year in Seattle bc of **** weather. ****ing morons
     
    mrpjfresh, Rakos, MoreTips and 4 others like this.
  11. Well the cost for them to own the scooter is relatively low compared to vehicles.

    Don’t need to. We have pointless bike lanes in NYC as well. Neighborhoods I legit never even seen a bicycle.
     
    tohunt4me likes this.
  12. Uber loses 8 cents for every dollar it collects from customers.
    Uber lights $120 on fire every second.
    Uber's growth in gross bookings has gone from parabolic to linear quite quickly (gross bookings 34% yr to yr). Its beginning to flat line.
    Uber's office/operations expenses are increasing at a 10% rate.
    Uber will run out of cash in 16 months.
    Uber's optimistic plan provided to junk bondholders is that it will break even for the first time in 36 months.
    Uber claims growth will occur because of scooter and bicycle rentals and a disastrous food delivery scheme.
    Uber claims robot cars will someday be cheaper to buy, own, operate, maintain than drivers making nickels.

    But don't worry investors, its worth $120 billion because ?
     
  13. 1.5xorbust

    1.5xorbust

    Location:
    San Diego
    So many possibilities. So few successes.
     
  14. dirtylee

    dirtylee

    Location:
    Dallas
    Driving:
    UberX
    EZ peasy plan to profits.
    1. Raise X rates & driver pay 50%.
    2. Remove pool & Ignore the bus crowd
    3. Highly incentivise full time ants to get commercial insurance.
    4. Move away from the top 5 most expensive city on the planet.
    5. Stop investing in the SDC money pit, just steal the tech Travis Kalanick style.
     
    Rakos, MoreTips and tohunt4me like this.
  15. 1. They want to lower driver pay not raise it (The less they pay you the more they make).
    2. They believe they will be saved by the Poo. If Poo works its 2 fares collected but only one driver to pay.
    3. You got one. If they return to commercial vehicles drivers have to cover their own insurance. Uber loses a billion a quarter. Uber pays a billion a quarter for insurance. This one move would break them even.
    4. The expensive cities were the original business model (Uber Black). The expensive cities are where the customers pay the most. But you think that Uber Omaha is profitable and Uber NYC is not???
    5. I have no clue why Travis (and Lyft, DiDi, etc) are convinced robot cars need to be created by rideshare companies. My understanding is Dara intended to shut it down when he took the job and then Uber execs convinced him to drink the koolaid. These guys believe something that I (and you) do not see, but they have more information than us.
     
    tohunt4me likes this.
  16. Meanwhile
    DRIVER EXPENSES HAVE DOUBLED.

    DRIVER PROFITS ARE DOWN 50% !

    UNSUSTAINABLE !

    Meanwhile
    DRIVER EXPENSES HAVE DOUBLED.

    DRIVER PROFITS ARE DOWN 50% !

    UNSUSTAINABLE !

    Driver Retention BELOW 4% !
     
  17. 1.5xorbust

    1.5xorbust

    Location:
    San Diego
    If you don’t take car depreciation and maintenance into consideration and drive surge only it’s not a bad gig.
     
  18. MoreTips

    MoreTips

    Location:
    Tampa
    It's great to see that at least some of the Wall Street prognosticators are seeing Uber for what it is, a investor and driver con game. Only a few at the top will walk away rich. Can't wait to see Travis Kalanick and his ticks on a future episode of American Greed.
     
    uberdriverfornow likes this.
  19. Uber's Guber

    Uber's Guber

    Location:
    United States
    Driving:
    UberX
    This is a good question I’ll attempt to answer:
    The rideshare companies probably know the won’t finish the race to design the ultimate SDC that everybody wants, but they have a unique advantage whereas they can raise tons of quick cash from their ants who churn vehicle-depreciation into earnings used by the tech companies to fund massive amounts of research & development that is “written off” while at the same time piling up a ton of patents that have value and can be sold off to the highest bidder.
    Remember the guy who first patented “intermittent” windshield wipers? These unique patents have a lot a value that make people rich.
     

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