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Uber Reports Loss Of $1 Billion On Road To IPO

Uber Reports Loss Of $1 Billion On Road To IPO
Jamie Jones
Written by Jamie Jones

Uber continues to drain money as it goes toward a much-hyped public offering in the next year. Lately, Uber stated that it cost around $1.07 Billion loss in the 3 Months ending in September, which is more by $891 Million damage in the previous quarter. According to a copy of the economics provided to CNN Business, this damage was since the company spends in newer services varying from food deliveries to scooters.

Yet the increase in losses came as the company’s sales stayed largely flat for the time. The ride-hailing company reported sales of $2.95 Billion for the quarter, which is higher by about 5% from the previous quarter. The new outcomes cited the challenge Uber surfaces in attempting to concurrently control its extensive losses while showing the quick sales growth, which financiers hope from a recent public technology company. Uber has frequently expressed that it anticipates going public in 2019. Analysts at the Wall Street prospects might be mostly high for Uber. It is esteemed at around $70 Billion on the private market, making it the “highly valued US startup.” It could allegedly collect a valuation of around $120 Billion in its IPO (initial public offering) next year. Nelson Chai—Uber’s Chief Financial Officer—stated in a statement that as the company looks forward to an IPO and further than that, also Uber is investing in future growth in platforms such as electric bikes, scooters, food, and freight. Like Uber’s main US rival—Lyft—the company has started on the electric scooter style in recent months.

Lately, Uber was also in news for launching a new reward program that allows users to cancel rides for free of cost and set some lower fares. Uber publicized its first ever customer-facing loyalty plan called known as “Uber Rewards.” This program offer users dedicated complimentary upgrades, phone support, and entry to the highest-rated drivers. The program will start in nine cities and is launched for all the U.S. riders for the next few months. Users get points for entitled dollars spent on Uber’s food delivery and ridesharing platforms. Now, Uber also plans to add its bike and scooter platforms into the program soon.

About the author

Jamie Jones

Jamie Jones

The Business department at Global News Journal is handled and managed by Jamie. she has 5 plus years of experience in the related sector. She has done her Masters in Business Administration and hence is a perfect fit for this job. If anybody has any doubt in the business section, they look up at Jamie. And she totally solves it. In her free time, Jamie loves sipping coffee at her favorite coffee shop.

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