The $1.1 Billion Question: What Future is There For Uber and Ridehailing?
Subscribe To Read This InsightBy James Hodgson | 2Q 2019 | IN-5518
US$1.1 Billion Dollar Loss |
NEWS |
In May 2019, Uber posted its first post-Initial Public Offering (IPO) earnings report, reporting a net loss of US$1.1 billion for Q1 2019 in spite of growing earnings and monthly active users. While new ventures such as Uber Eats exhibited impressive growth rates of 89%, the core ride-hailing business only achieved a much more muted growth rate of 20%. Furthermore, Uber was able to grow its base of monthly active users by 33% over a period that also saw the brand retreat from Asia-Pacific (APAC) to consolidate its geographic coverage.
With so many of the metrics painting a rosy picture, the scale of the loss throws the intense cost pressures facing Uber into sharp relief and raises questions about the longevity of Uber’s land grab strategy and the sustainability of ride-hailing in general.
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