Uber CEO says business is ‘absolutely sustainable’ after losing $5.2 billion in three months.
Uber, offering ride-hailing services reports a whopping $5.2 billion loss in the three months ending in June, its largest quarterly amount ever.
Even when setting aside losses for stock compensation associated with its May initial public offering, Uber still lost about 50% more than the same period the year before.
The company’s stock is now down by nearly a third from its IPO price in May. On Thursday, Uber closed down slightly, following the event.
Uber announced more than 25 changes to its platform at a launch event in San Francisco on Thursday. Among the tech company’s most significant moves will be merging its ride-hailing app and food-delivery app Uber Eats, and offering users alternative travel information including bikes, scooters, public transportation, and even helicopters in some locations.
Uber CEO Dara Khosrowshahi even trotted out a new favorite slogan for the company. Uber, he says, wants to be the “operating system for everyday life.”
Also unveiled at the event were safety features such as texting 911, reporting incidents during rides, real-time ID check and ride verification.
But the actual announcements at the event may be too incremental to turn around a company facing a long and daunting list of problems, including record losses, multiple rounds of layoffs, continued scrutiny over passenger safety, potentially existential regulatory threats and a stock price that is hovering near an all-time low.
“It’s lipstick on several pigs at once,” said David Kirsch, a University of Maryland business professor. “I’m trying to figure out what magic do they think they’re invoking by putting these things into a single app.”
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