Uber Loses $1 Billion in Q1 2019

Ride-hailing giant Uber released their Q1 2019 financial report as a public company. The company lost the sum of $1.1 billion, the largest loss amongst public companies. The report also revealed that Uber’s revenue went up by 20% at $3.1 billion as against the $2.58 billion it made in Q1 2018. This is better than the $3.04 billion that was forecasted for Q1 2019.

Uber loses $1Billion in the last financial quarter—that is $11Million every single dayhttps://t.co/HuMuBze7JG

— DwaynePhillips (@DwaynePhillips) May 31, 2019

Ubers total Gross Booking rose at 34%– $14.6 billion while its monthly active users grew to 33%. The company recorded an average of 17 million trips per day and annual gross bookings run-rate at $59 billion.

Uber’s business generally grew by 20% but its ride-hailing segment grew slower than the other segments. The ride-hailing segment grew 9% overall but grew 26% in the US, $1.8 billion in Canada, 26% in Europe, and the Middle East and Africa at $478 million. It also grew 6% in Asia at $267 million but fell by 13% in Latin America at $450 million.

See also: Uber to Ban Poorly Reviewed Passengers

Uber Eats — an online food ordering and delivery platform and subsidiary of Uber was launched in San Francisco, California 2014. Its revenue shot up by 89% and gross bookings grew by 108%.

The company identified rider’s promotions and driver incentives as the huge contributors to its loss. They also identified Uber Eats expansion cost and the cost of the development of its self-driving cars as part of the reason for the loss. The company said it will cut down on customer promotions in the second quarter of 2019.