News

Uber Lost 520 Billion Shillings in The Past Three Months

0
Uber IPO
Image Courtesy

Uber has reported its quarterly earnings for the second period of 2019. Between April and June, Uber’s records show a massive loss of Kes.520 billion ($5.2 billion), the company’s highest recorded losses, ever and they are not alone.

The ride-hailing app’s biggest rival in the U.S., Lyft, has also reported a loss of Kes.64 billion ($644 million) but this lower number doesn’t necessarily mean Lyft is doing better than Uber.

Analysts claim that these huge losses were expected as both ride-hailing services recently started trading publicly. For both Uber and Lyft, their massive GDP-Competing losses were driven to the roof thanks to expenses in amortization of intangible assets and stock-based compensation for employees after the IPO.

Without these expenses, their red-ink records are far easier to take in, with Uber’s negatives standing at Kes.130 billion ($1.3 billion) and Lyft’s losses at Kes.19.7 billion ($197 million). As mentioned earlier, the higher losses incurred by Uber don’t actually mean Lyft is doing better than it, on the contrary, Uber’s Everest expenses and losses are thanks to the company’s larger size and portfolio.

According to Wallstreet analysts, Uber’s big loss is nothing to scare investors away, actually, after this announcement, Uber’s stock price shot up. “It’s a routine cost for newly public companies—though Uber’s is much larger due to the company’s size—and investors are likely to forgive it as a one-off,” noted Eric Newcomer in Bloomberg.

It’s not all bad, Uber’s revenue grew by fourteen percent (14%) over the same period in 2018, posting earnings of Kes.310 billion ($3.1 billion).


Check out more coverage on Uber.

Also Read:  Uber Reveals Plans To Launch Its Boat-Hailing Service in Nigeria

Huawei’s HarmonyOS – Everything There is To Know

Previous article

Maker of TECNO, Infinix and itel Plans To Raise 42.6 Billion Through Shares

Next article

You may also like

Comments

Share Your Opinion