Uber published a report of its third-quarter (Q3) earnings for 2019 and unlike the previous quarter, there was but a not-so-catastrophic dip in its revenue
The ride-hailing company has had to struggle with revenue dip during the course of this year more than ever. In the second quarter of the ongoing year, Uber reported a net loss of $5.2 billion, although with a tangible explanation for its major loss, however, the company has yet failed to turn a profit for the quarter after-Q3, reporting a net loss of $1.2 billion– certainly not as intense as the previous quarter.
While the Q3 earnings report made it to the media’s ear on Monday, it has ever since stared a lot of controversies, especially with many people attributing the dip to be a result of the recent issues faced by the company.
On the flip side, Uber made claims that it brought in $3.8 billion in revenue over the four-month period ending in September. Gross bookings, or total customer payments to Uber before payments to drivers and other fees or discounts, grew to $16.5 billion, representing 29 percent year-over-year growth– an indication that the company was doing fine regardless of the slight dip.
Uber announced a major overhaul of its app right before the end of the quarter. The company said that it would merge its ride-hailing and food delivery apps, add a raft of new safety features, and boost alternate modes of travel like bikes, scooters, and public transportation, as part of a bid to become, as CEO Dara Khosrowshahi says, “the operating system for your everyday life.”– all of these new integrations were suppose to help make the company even profitable, however, it may just be too early to decide that.
Previously, Uber has said it will start earning money within three to four years and wants to achieve EBITDA profitability for the full year of 2021. “I would be very disappointed if Uber isn’t profitable in three years,” Khosrowshahi told CNBC last summer. “The investors are expecting profitability going forward. I think our rides business is the most mature business, so it is going to enter an area of profitability sooner than our other businesses. With Eats, we’re looking to get into number one or two positions in every market that we compete with. And I think our investors expect us to deliver.”