Ride-hailing app Uber has said it will continue to invest in Uber Eats, and electric bikes and scooters businesses as well as in high-potential markets like India and the Middle East, even though its losses mounted to over USD 1 billion in the September 2018 quarter.
The US-based company registered USD 1.07 billion in losses in the quarter ended September, up from USD 891 million in the previous quarter. Its sales grew by about 5 per cent to USD 2.95 billion for the said quarter from the previous quarter.
“We had another strong quarter for a business of our size and global scope. 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 where we continue to solidify our leadership position,” Uber CFO Nelson Chai said.
The company said it is on track for its initial public offering next year.
Gross bookings from Uber Eats grew more than 150 per cent year-on-year to USD 2.1 billion (excluding Southeast Asia and Russia).
The company said its core business (rides, eats and freight) was contribution margin positive for the fourth quarter in a row, despite continued global competition.
“We signalled clearly over the last two quarters that we would be aggressively reinvesting our profits into emerging markets and business lines, like India, the Middle East, Freight, Eats and JUMP. That’s exactly what we did,” an Uber spokesperson said.
The spokesperson further said the company does not want to “miss the huge opportunities ahead of by becoming too profitable too quickly”.
“…we’re just getting started and are investing for the future,” the spokesperson said.
This is published unedited from the PTI feed.