Uber, the ride-hailing company has revealed its financial growth for the second quarter of 2018 and it is not so impressive.
Uber brought in $2.8 billion in revenue in the second quarter of 2018 which is a 51% increase year-on-year at the same time lost of $891 million, thanks to increased spending by the ride-hailing company. However, this is not a big loss if compared to last year when Uber lost $1.1 billion. But It’s still significant when compared to Q1 2018 ($304 million).
The main reason for such huge profit losses is due to Uber introducing new services and pouring plenty of cash into them. This includes food delivery, autonomous car technology and its aggressive expansion of ride-hailing services in other countries to fight local competition in various markets.
There are certain Uber services which are not getting a good response from the public but still Uber is not giving up on them. Uber Eats, a food delivery service is also only available in a few countries (not in Pakistan) and still Uber invests heavily in it despite the not so good response. Moreover, Uber has also acquired Jump, an electric bike hailing service, in an attempt to fight congestion and provide a more environmentally friendly mode of transport.
Read Also: Uber plans to merge with Careem
Uber’s current CEO Dara Khosrowshahi says “We had another great quarter, continuing to grow at an impressive rate for a business of our scale. Going forward, we’re deliberately investing in the future of our platform: big bets like Uber Eats; congestion and environmentally friendly modes of transport like Express Pool, e-bikes and scooters; emerging businesses like Freight; and high-potential markets in the Middle East and India where we are cementing our leadership position.”
Uber’s current CEO Dara Khosrowshahi is widely known for spending more than necessary and focusing on growth rather than increasing profits. Uber reportedly spends anywhere between $125 million and $200 million on its self driving car projects, which also ran into some problems a while back.
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