UBER Technologies reported that the first quarter ended a $ 1 billion net loss due to large investments in food delivery and freight transport and increased drivers’ incentive costs.
The number of users reached 93 million
In the last year’s last quarter, the company recorded a net loss of $ 887 million. In the first quarter of 2018, they had a net profit of $ 3.75 billion due to the sale of a part of the business.
In the first quarter of this year, their revenues jumped 20 percent to the same period last year and amounted to $ 3.1 billion.
Costs rose by 35 percent, primarily due to the initial public offering of shares in early May. Meanwhile, the price of Uber’s shares fell by more than 10 percent compared to the $ 45 set in the IPO.
Gross bookings, the total value of drivers’ driving costs and other costs, rose 34 percent year-over-year to $ 14.6 billion. As compared to the previous quarter, only 3.4 percent were increased, which shows difficulties in recruiting new drivers on the saturated market.
The number of active service users in the one month period grew by 33 percent compared to the same period last year, reaching 93 million at the end of March.