Uber’s move into bikes and food delivery deepens losses

Losses at Uber are mounting even as it reported a 51% annual increase in income from its taxi app business.
Income from its global taxi businesses, once it had paid its drivers, rose to $2.7bn (£2.1bn) in the last quarter.
But the cost of expansion plans into areas like bike sharing and Uber Eats, its food delivery business has meant losses have grown rapidly.
The company said adjusted losses in the last three months rose 32% on the previous quarter to $404m.
Dara Khosrowshahi, Uber chief executive said the company was “continuing to grow at an impressive rate for a business of our scale.
“We’re deliberately investing in the future of our platform: big bets like Uber Eats; congestion and environmentally friendly modes of transport like Express Pool, e-bikes and scooters; emerging businesses like Freight; and high-potential markets in the Middle East and India where we are cementing our leadership position.”
In May at a conference in California Mr Khosrowshahi said the food delivery business Uber Eats was taking $6bn bookings a year and growing 200% annually.
Under pressure
Uber is under pressure to become more profitable for a planned offering of its shares to the public next year.
David Brophy, professor of finance at the University of Michigan, told Reuters the firm could expect to see its valuation slashed in a public listing if it did not show more progress towards becoming profitable.
The taxi giant was most recently valued at $72bn, making it one of the most valuable privately held firms in the world.
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Source: BBC

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