Uber posts net loss of $1.2b, but it expects to be profitable in 2021

Uber on Monday posted a net loss of about US$1.2 billion for Q3 2019, which came in wider than the US$986 million loss it recorded in the same period last year. It is, however, still drastically better than the US$5.2 billion loss it reported in the prior quarter.

Uber, which went public earlier this year, mainly attributed the quarter-over-quarter improvement to revenue growth of about US$647 million.

Photo credit: Dan Gold / Unsplash

Gross bookings, the total amount that customers pay to Uber before payments to drivers and other fees and discounts, amounted to US$16.5 billion in Q3 this year, up 29% from the same quarter a year ago.

Overall, the company raked in around US$3.8 billion over the four-month period ending in September, up 39% from the US$2.9 billion it recorded a year ago. Of Uber’s total reported revenues, its Uber Rides segment pulled in about US$2.9 billion, while its Uber Eats segment contributed around US$645 million.

During the quarter, Uber claimed that its Rides segment crossed US$1 billion in weekly gross bookings, with adjusted earnings from the business coming in positive for the eighth quarter in a row.

While the company is still burning through its cash, Uber CEO Dara Khosrowshahi told CNBC that the firm could become profitable on an adjusted earnings basis for the full year in 2021.

“While we haven’t finalized our planning, and it’s going to take a lot of hard work from a lot of folks, we are actually targeting 2021. So we know there is the expectation of profitability, and we expect to deliver for 2021,” the head exec said.

Uber is the second ride-hailing company to hit the US public market, with its competitor, Lyft, being the first one. In Uber’s initial public offering filing, the company said that its growth was slowing, and it may never make a profit.

In September, the firm also updated its app to combine Rides, Eats, and future offerings side by side on a single platform. It is currently being tested in hundreds of cities in the US and internationally, the company said.

In addition to this overhaul, Uber also added new safety features and launched a suite of subscription programs for Rides, Eats, and e-bike and e-scooter rental service Uber Jump.