The American multinational transportation network company Uber reported a $5.2 billion loss on Thursday. Its revenue fell short of predictions by Wall Street analysts. Shares were also down by 6 percent.
Company representatives said its revenue had slowed, and while profitability targets were higher than anticipated, many analysts questioned Uber’s ability to remain competitive.
Haris Anwar, an analyst for Investing.com, said: “Losses are widening and the competition is cut-throat. What’s sapping investor confidence and hitting its stock hard after this report is the absence of a clear path to grow revenue and cut costs.”
Earlier in the year, a pricing war between Lyft and Uber set higher revenue expectations for the larger ride-hailing service.
Uber’s stock had soared as much as 8 percent on Thursday, while Lyft’s had risen by 3 percent. However, once Uber released its report disclosing its losses, its shares fell by 6 percent and Lyft’s had fallen by almost 2 percent.
Uber also reported that revenue growth dropped by 14 percent to $3.2 billion. Analysts had predicted $3.36 billion in revenues. Its ride-hailing business grew its revenue by 2 percent to $2.3 billion. Its food delivery service, Uber Eats, grew by $595 billion or 72 percent.
Uber’s bookings rose 31 percent from last year, up by $15.76 billion. Analysts weren’t far off the mark and had predicted $15.80 billion. Gross bookings are expected to range from $65 to $67 billion.
The company is set on convincing investors that all avenues of its business will contribute to its growth in the coming year.
Uber recently cut nearly 400 jobs from its marketing division.