Even with a top-notch standard, Uber still manages to burn through a major and the biggest loss ever in a single quarter, although for a good course
The ride-hailing company reported its biggest revenue dip so far in its latest financial report for the second quarter (Q2) of 2019. According to the company, it has managed to lose approximately $5.2 billion in revenue within the last three months ending in June, and at that marks the biggest dip ever for the company in a single quarter.
Although massive, however, the loss was not unexpected, considering that the company had initially told the public months back to envisage the unexpected, but who would have thought that it would be of this magnitude. At that, you may also need to know that the loss is not as terrible as it sounds on the surface, due to the fact that a major part of it (which amount to about $3.9 billion) is due to its stock-based awards to employees after its IPO in May. So it is literally not as a result of failed strategy as many thought.
Also, the company had dashed out a $298 million appreciation token for drivers during its “driver appreciation award” related to the IPO as well. However, that doesn’t mean the company had not incurred a huge loss even on neutral ground– as a matter of fact, Uber lost approximately $1.3 billion during the second quarter which is about twice the amount Lyft lost in the same quarter.
Lyft recently reported it finances for the second quarter and if compared with Uber is not doing as great as Uber regardless of the massive dip, although not poorly as well, considering that it has managed to grow its revenue up by 72 percent year-over-year. Lyft, during Q2, lost $644.2 million overall while gaining $867.3 million in total revenue during the second quarter (Q2) of 2019, so you can tell that the figures, although not as much as Uber, are not bad after all.
Uber Hits A New User-Milestone Of 100 Million
That been said, it’s not all bad news from Uber who also reported a bump in the number of monthly users of its hailing app. Uber in the same report revealed that more than 100 million people used Uber service during the period of July alone, hence, marking the first time the company will be hitting a new monthly milestone.
As a result of this bump, trips rose 35 percent in Q2 compared with the previous year, up to 1.67 billion. Also, Revenue is on the increase, standing at $3.17 billion, it rose 14 percent year-over-year, though it was lower than the expected figure of $3.36 billion. Despite the new milestone, the company still complains that the growth is slowed overall, however, there might be an adjustment in the coming quarters of 2019.