Uber reports $1 billion quarterly loss as it seeks to diversify its business

Ride-hailing company Uber has revealed that its net loss topped $1.07 billion dollars for the quarter that ended on 30th September, a 20 percent increase from the previous quarter but down 27 percent from a year ago.

While Uber is a private company, it has taken to sharing quarterly earnings figures as it prepares for a much-anticipated debut on the stock market next year. It was recently valued at $72 billion, making it one of the most valuable privately held firms in the world.

The company reported gross bookings of $12.7 billion, up 6 percent from the previous quarter and up 41 percent from a year ago. Revenue for the quarter was $2.95 billion, a 5 percent boost from the previous quarter and up 38 percent from a year ago.

Uber chief financial officer Nelson Chai said in a statement:

We had another strong quarter for a business of our size and global scope. As we look ahead to an IPO and beyond, we are investing in future growth across our platform, including in food, freight, electric bikes and scooters, and high-potential markets in India and the Middle East where we continue to solidify our leadership position.

The company posted growth in bookings for its ride-hailing and delivery services rose 6 percent in the latest quarter, the third quarter in a row that growth has remained in the single digits after double-digit growth for all of last year.

The reported loss is likely because the company is aiming to diversify its business and in doing that, it pumped money into bikes, scooters, freight and food delivery services. In its move to expand its services, Uber is also seeking to become a major player in autonomous cars. It has agreed to buy and adapt vehicles from Volvo to begin operating self-driving taxis.

Some reports suggest that the global ridesharing giant is considering speeding up its plans for an initial public offering to the first half of 2019, rather than the second half of the year. Japan’s SoftBank recently took about 15 percent stake in Uber in a deal which foresees an initial public offering by Uber next year.