Uber freezes hiring of United States tech staff, seeks to cut costs

Marco Green
August 12, 2019

For the second quarter, Uber reported a record net loss of $5.23 billion, which included $3.9 billion of stock-based compensation costs related to its initial public offering.

Several other equities research analysts also recently commented on the stock.

Uber's revenue growth slowed in the second quarter and its losses widened as it continued to spend heavily on discounting and new businesses. More importantly the company updated its outlook for the year, saying it expected to expected to lose $850 million to $875 million in 2019, a much-improved outlook compared to its prior estimate of $1.15 billion to $1.175 billion.

"There's the meme [going] around, which is, can Uber ever be profitable?" "We usually aim to be number one or number two in any market, but we are number three here now", Khosrowshahi said during an analysts' call after the results announcement. "I've certainly heard that meme, along with others". Finally, Regal Wealth Group Inc. bought a new position in shares of Uber Technologies in the second quarter valued at approximately $32,000.

Khosrowshahi stressed that Uber's ride-hailing service, along with its meal delivery service, each have the potential to "be a spectacular business long-term". He was answering David Faber about SoftBank's investments in Uber's competitor, who said that Masayoshi Son is a businessman and he doesn't throw good money after bad. During the same period a year ago, the business earned ($2.01) EPS.

Global taxi-hailing platform Uber is having a hard time cracking the food delivery business in India, with the company trailing third behind home-grown rivals Swiggy and Zomato.

Uber said Wednesday it paid $3.9 billion in stock-based reimbursement as well as its expenses during the quarter.

Shares of Uber Inc fell 10% in early trading on Friday after the ride-hailing service missed most Wall Street targets in its quarterly earnings report, in sharp contrast to upbeat numbers from USA rival Lyft Inc a day earlier.

For years, Uber was viewed as the darling of Silicon Valley. Today, the company is public, fighting off its competitors actively and is aiming for maximised returns for its investors.

"If the company is able to execute on the growth drivers and ultimately make an improvement in terms of how cash they burn over the next few years..." The firm's quarterly revenue was up 14.4% compared to the same quarter past year.

Both Uber and Lyft remain below their respective IPO prices.

The hiring freeze comes after 400 layoffs in its marketing department last week, which raised concerns and fears company-wide.

Other reports by Click Lancashire

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