Uber has shown in its financial report, a loss of $1 billion in the first Quarter despite the revenue growth in the same quarter 2019. The loss occurs as a result of the Uber struggle to maintain the market share. However, in its earnings report, this ride-hailing giant company has reported a $1.3 billion of revenue growth in the first quarter of 2019. This is 20% higher in comparison to the revenue growth, which Uber bear last year at the same time. Revenue growth in this first quarter has shown a highly dramatic increase.
According to the Chief Financial Officer (CFO) of Uber, Nelson Chai, this ride-hailing company has fulfilled the earning expectation of the Wall Street. He further revealed that the shares rose by a percentage of 2.9%. The struggle was to reach to the goal of $40.97.
Nelson stated that along with the aim to spread our functions globally and in long-term and technology differentiation, Uber knows how to defend its market position through investment.
Uber First Quarter CFO and CEO Remarks
CFO of Uber elaborated the fact that our ride-hailing company is facing less aggressive pricing from their competitors which will continue in the second quarter as well. The CEO of Uber, Dara Khosrowshahi told to the sources that this time customer engagement across the globe is pretty much higher than ever.
Uber CEO further disclosed that the first quarter engagements were in actual, higher than ever expected. During the first quarter, the engagement was reported on an average 17 million trips per day, which in terms of booking run-rate is around US $5.9 million. He was courageous to share the fact that this ride-sharing company has focused on becoming a one stop shop for the commerce and the local transportation as well.
Khosrowshahi said that Uber is a brand which is renowned all around the world. As this brand has already created two businesses of multiple-billion dollar through branding and its next step is to move towards freight.
Uber’s IPO price was $45 and on the first day of trading, the stock price closed on $39.8 that was 12% below than its IPO price. Meanwhile, in the Uber first day of trading, $617 million of massive hit was reported. This was the largest loss Uber faced on the first day of trading.