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The American multinational transportation network company, Uber posted losses of more than $1 billion on its revenue of $3.1 billion for the first quarter of 2019. While on the other hand, Gross bookings rose 34% to $14.6 billion, as Uber Eats continued to show notable growth.

Amid both positive and negative stock predictions, NYSE: UBER fluctuated ahead of the news, ultimately closing down .25% at $39.90 per share.

As per FactSet, analysts anticipated an adjusted net loss per share of 76 cents on earnings of about $3.1 billion. Moreover, Uber, in its IPO paperwork, stated that it expected first-quarter losses to fall between $1 billion and $1.1 billion.

Statements Made by Uber’s Chief

For instance, earlier this month, Uber Chief Dara Khorsrowshahi said, “we took the important step of becoming a public company, and now we are focused on implementing our strategy to become somewhat of a one-stop shop for local transportation and commerce, in the first quarter, engagement across our platform was higher than ever, with an astonishing average of 1 million trips per day and the gross bookings run-rate of $59 billion.”

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Since its rocky debut on the New York Stock Exchange, Uber has traded below its IPO price. Evidently, the company priced its IPO at $45 per share earlier this month, raising $8.1 billion in the process. Just after that, the company opened at a disappointing $42 a share. Well, that was a shock which spread like a wildfire in it’s the tech ecosystem, which had predicted an IPO pop on par with Lyft’s, at least.

The point is Uber’s performance in the public market has been a total disappointment. Wall Street experts, even investors had anticipated an initial market cap in the ballpark of $100 billion. Instead of that, Uber sits at a valuation of about $67 billion, or $5 billion lower than the $72 billion valuations it earned with its last private financing.

Uber’s core business, which is ride-hailing, is growing much slower than other segments of the massive business. While revenues grew 20% from the same period last year, revenues in the company’s ride-hail department grew only 9%. On the other hand, Uber Eats revenue went up to 89% while its gross bookings grew 108%.

However, Uber’s competitor Lyft, in its part, is trading well below its IPO price of $72 per share, closing down 2.5% on Thursday at $56 apiece. Today, it’s market cap is approximately $16 billion, or just above its $15.1 billion Series I valuation. Lyft posted its own earnings report just days before Uber completed its own IPO earlier this month.

Uber Lost another $1B Last Quarter

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Anshul Sharma
Author

Anshul Sharma is the visionary CEO of Fluper, the leading mobile app development company known for its innovative solutions and cutting-edge mobile applications. With a relentless drive for excellence and a deep understanding of the tech industry, Anshul leads Fluper with a focus on delivering value-driven products that transform businesses. Under his leadership, Fluper has become synonymous with quality, reliability, and innovation in the digital space.

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