Uber loses NZ$1.55 billion in the first three months of 2019

A screen displays the company logo and the trading information for Uber Technologies Inc. at the New York Stock Exchange in New York, US, May 10, 2019.
A screen displays the company logo and the trading information for Uber Technologies Inc. at the New York Stock Exchange in New York, US, May 10, 2019. Photo credit: REUTERS/Brendan McDermid.

Popular app taxi service Uber has reported a US$1.01 billion (NZ$1.55 billion) loss in the first three months of 2019, one of the largest losses of any public company.

The loss comes after Uber's listing in May as a publicly traded company. 

As reported by the New York Times, Uber's first financial report since listing its shares on the stock market this May showed its slowest growth in years, with exorbitant losses for the first quarter of 2019.

The loss resulted in Uber's lowest quarterly growth rate since 2017.

The New York Times reports that the quarterly loss compounds a rough period for Uber after their turbulent stock market launch.

An initial public offering turned sour after investors questioned if the notoriously unprofitable company could ever generate significant revenue.

Uber's stock, which first started trading on May 10, has reportedly fallen more than 11 percent since the debacle. Their shares have decreased from their US$45 (NZ$69) offer price.

Uber executives have also been condemned for their conduct, according to media outlets.

The significant loss has raised questions over the profitability and feasibility of ride-hailing as a business.

Uber's chief executive Dara Khosrowshahi released a statement on Thursday (local time), saying despite increased user engagement, the losses were far from over. Uber plans to increase their global expansion - a business move that comes with a heavy price tag.

The company is allegedly willing to outspend opponents in the ride-hailing business despite the steep losses, and are continuing to invest in products and technology that will set them apart from their competitors.

However, the company's newer endeavours such as freight and food delivery are maintaining a healthy growth rate. According to the New York Times, UberEats increased by more than double from the previous year, and is set to expand to Latin America and Japan.

In a conference call following the report's release, chief financial officer Nelson Chai said Uber is planning to reduce customer promotions, decreasing their marketing expenses in the second quarter.

Newshub.

Contact Newshub with your story tips:
news@newshub.co.nz