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Uber posts $5.2bn loss disappointing investors with results showing a hit in its earnings from its initial public offering exercise.
Its largest quarterly loss ever, fueled mostly by $3.9 billion in stock-based compensation expenses related to the IPO.
Even by Uber’s standards, this is a big burn for its business which is also facing stiffer competition on US soil.
Uber lost to locally-groomed Grab in Southeast Asia, quitting in total defeat after becoming the pioneer in ride-hailing the region.
Nevertheless, without the charges (from the IPO) the company lost about $1.3 billion during the quarter.
As a matter of fact, this is roughly a 50% spike from the year prior.
The mounting losses come after Uber’s continued investment in freight shipping and meal deliveries.
In its drive to compete with others, it is offering discounts for its core ride-hailing business to attract new customers.
Competition with companies like Lyft is hurting its business.
Uber shares are off 10 per cent. Equity in the company is now worth just $38.50 per share, sharply under its $45 per-share IPO price.
Uber raised $8.1 billion in its IPO and is valued at $82.4 billion.