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Diversification Investments Result In Uber Loosing Over $1B In Q3


11/15/2018


Diversification Investments Result In Uber Loosing Over $1B In Q3
Investments in bikes, scooters, freight and food delivery business was cited to be the reason behind a more than a billion dollar net loss by the ride hailing company Uber for the third quarter.
 
Despite still being privately owned, Uber has been published its quarterly performance and financial figures because it is planning on launching of its initial public offerings sometime next year.
 
According to the third quarter earnings report announced by Uber, the company made a loss of $1.1 billion against revenues of $12.7 billion which was $3 billion more than the same quarter a year ago.
 
"We had another strong quarter for a business of our size and global scope," Uber chief financial officer Nelson Chai said in a statement shared along with the earnings figures.
 
"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."
 
In the quarter earlier, the ride hailing company has declared revenues of $12 bullion and a loss of $891 million on net revenue of $2.8 billion.
 
According to previously published media reports, the ride hailing company has plans to achieve a market valuation of $100 bullion when it announces its much anticipated IPO in 2019 which is expected to be the largest ever IPO launch in the tech sector.
 
According to multiple reports quoting people with knowledge of the matter is that Uber wants to hurry up with its IPO launch and do it in the first half of next year instead of the second half.
 
The current valuation of the company is already at $1 billion and is the largest venture-backed "unicorns" with operations in over 60 countries. The current market valuation of the company is considered to be rare for a company that does not collect public money by issuing equity.
 
Japanese auto giant Toyota has reportedly made the latest investment in the company when the ride hailing form was reportedly valued at $72 billion.
 
There have been no comments made by Uber on the issue of its IPO plans in the statement.
 
It has also been reported that Uber has an understanding with Japan's SoftBank, which has about 15 per cent stake in the company through its investments, of launching an IPO by the end of 2019.
 
Following a string of controversies, Uber last year appointed Dara Khosrowshahi as its new chief executive who has pledged to bring some drastic changes in the corporate culture of the company and its business practices. In recent times, Uber has been riddled with a number of missteps and scandals over executive misconduct and there have been multiple allegations of a bad work environment in the company and of immoral business and competitive practices.
 
There has also been a diversification spree at the company as it has ventured into freight hauling, delivering food, and in the business of scooters or bicycle sharing.
 
Additionally, Uber has also ventured in to he development of autonomous car technology and has agreed to include self driving cars as a part of its fleet with help from Volvo.
 
(Source:www.news.abs-cbs.com)