Uber has large quarterly loss

US-based Uber lost US$5.24 billion in the second quarter after making massive stock-based pay outs in the months after its initial public offering.

It paid US$3.9 billion in stock-based compensation and expenses during the quarter and US$298 million in stock and cash to drivers, the Associated Press reports.

Uber’s largest quarterly loss per share, including those expenses, totalled US$4.72 while revenue jumped 14% to US$3.17 billion.

The company is one of the leading global investors in autonomous vehicles, has a growing number of EVs and hybrids, and spends heavily on sales and marketing, reaching US$1.22 billion, up 71% compared to last year. Price wars and retaining drivers while competing with rivals affected its profitability.

Lower losses lie ahead along with investment in new growth levers, Uber chief executive officer Dara Khosrowshahi says, adding the business will eventually break even and become profitable.

The Uber Eats food delivery business may not be profitable during the next two years, but Khosrowshahi believes the ride business will improve and allow the company to invest more in the Eats side.

Uber saw double-digit revenue growth in the US, Europe, Middle East, Africa and Asia Pacific regions, while revenue fell 24% to US$417 million in Latin America.

Gross bookings reached US$15.76 billion, up 31% on the same period last year.

Monthly Uber Eats users grew more than 140% compared to last year, and revenue for the service rose 72% to US$595 million, while ridesharing revenue grew 2% to $2.35 billion because of the one-off driver appreciation payments, the company says.