Uber Loses $939M In Q3

Uber’s Q3 2018 financial results show that the company’s net losses increased 32 percent to $939 million quarter over quarter.

On an earnings before interest, depreciation, taxes and amortization basis (EBIDTA), Uber’s losses came to $527 million, up about 21 percent quarter over quarter, according to reports. Revenue went up 5 percent quarter over quarter at $2.95 billion and increased 38 percent year over year. Gross bookings saw a 6 percent boost quarter over quarter and 34 percent year over year at $12.7 billion.

In addition, the ridesharing company shared specific Uber Eats gross bookings for the first time, with the service accounting for $2.1 billion of overall gross bookings, growing over 150 percent year over year.

“We had another strong quarter for a business of our size and global scope,” said Uber Chief Financial Officer Nelson Chai in a statement. “As we look ahead to an [initial public offering (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.”

Last year, Uber CEO Dara Khosrowshahi said the company is targeting 2019 for its IPO. Its chief rival, Lyft, has reportedly given JPMorgan Chase the job of leading the ridesharing provider’s IPO, with reports saying that its value “could” be more than $15 billion. The Lyft IPO would also supposedly happen in early 2019, though it would take place before Uber’s.

Lyft lost $254 million in the third quarter of 2018, compared to $195 million in the same period a year earlier. Q3 revenue, meanwhile, increased about 88 percent year over year to $563 million.

As PYMNTS recently noted, as far as new issues on the public markets go, it may not matter that the red ink is building up. A recent report found that 83 percent of IPOs through 2018 to date were with firms that lost money through the year that predated their IPOs. That percentage marks the highest tally in 38 years. The previous peak was 2000, which saw 81 percent of firms that came to market that year lose money.