Business

Slower growth expected for Uber with major loss of $891 million in 2018’s second quarter

According to the latest copy for Uber’s financial status, the company’s quarterly revenue rose up to $2.8 billion which is a 63 percent rise over the previous year’s status. The company had lost $891 million this year as compared to the $1.1 billion loss experienced a year back.

Uber saw an increase in the gross booking for up to 41 percent that rounded off to $12 billion. In the month of May, the company had reported a rarely occurring profit for the 1st quarter of the year given the fact that it had actually given up two of its overall operations located abroad to the competitors. Uber releases the financial results on a regular basis and given the fact that it is a private company with no obligation to do so, the firm wants to be transparent with the government and its users.

Dara Khosrowshahi, the CEO of Uber said in a statement that the company had another profitable quarter and continues the growth pattern at a particularly impressive rate given the business of global scale. In future, the company shall be investing in a wider format for the future.

Khosrowshahi took the position of the CEO in the company last year when Uber was undergoing turmoil with massive loss in its way. Currently, Uber has stabilized its position by investing in other profitable areas such as scooters and bike sharing along with food delivery as well. These markets as tagged by Khosrowshahi are the highly profitable platforms especially in India and Middle East area.

Further, the company reveals its plan to consider the initial offering for public in the year 2019. However, Uber is still exposed to continuous challenges which include the regulatory hurdles. Just last week, it was New York that cut down the number of vehicles for ride-sharing and became the very first city in America to implement this regulation. This introduced a heavy loss for the company Uber along with its competitor Lyft that forced the companies to pay its drivers minimum wage.

To add to the woes for the company, the self-driving efforts by the ride provider led to a major setback when an autonomous SUV by Uber struck a pedestrian near the Tempe area of Arizona leading to his death in the early half of 2018. This has led to a loss of investment for the self-driving units which is close to $200 million in just a quarter.

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