SAN FRANCISCO–(BUSINESS WIRE)–Uber Technologies, Inc. (NYSE: UBER) announced financial results on May 30 for the quarter ended March 31, 2019.
“Earlier this month we took the important step of becoming a public company, and we are now focused on executing our strategy to become a one-stop shop for local transportation and commerce. In the first quarter, engagement across our platform was higher than ever, with an average of 17 million trips per day and an annualized gross bookings run-rate of $59 billion,” said Dara Khosrowshahi, CEO. “Our global reach continues to be an important differentiator, and we maintained leadership of the ridesharing category in every region we serve.”
About Uber
Uber is a convenient, inexpensive and safe taxi service for riders. Hire a private driver to pick you up & take you to your destination with the tap of a button on any smartphone device. A nearby driver often arrives to pick you up within minutes.
In addition to taxi service, Uber is working to bring the future closer with self-driving technology and urban air transport, helping people order food quickly and affordably, removing barriers to healthcare, creating new freight-booking solutions, and helping companies provide a seamless employee travel experience.
For drivers – Uber provides exceptional pay, allows you to be your own boss, and even receive tips. Take on fares whenever you wish (work as much or as little as you desire) while meeting new people in your city from all walks of life.
Launched in San Francisco, California, now Uber operates in 678+ cities in 77 countries and it is currently valued at over $82 billion.
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Uber’s First Quarter Results
Financial and Operational Results
Due to the higher costs and expenses as well as the lower income, Uber suffered a loss in the first quarter of 2019 from a profit last year. Net loss attributable to the company was $1.01 billion or $2.26 per share. That compares with a profit of $3.75 billion or $1.84 per share it reported for the same period last year.
In the first quarter, Uber estimated revenue for the quarter would range from $3.04 billion to $3.10 billion. It grew 20% from the same period last year. Gross bookings raised by 34% to $14.65 billion. Monthly active platform consumers increased by 33% to 93 million and trip climbed by 36% to 1.55 billion.
In early May, Uber priced its IPO at $45 per share, raising $8.1 billion in the process. however, the stock sank 7.6% on its first day, sending shockwaves through the tech ecosystem. Uber currently sits at a valuation of about $67 billion. It is $5 billion lower than its value in its last private financing.
For the first quarter, Ridesharing, Uber’s core business grew by 9% year-over-year to $2.38 billion while Uber Eats soared by 89% to $536 million. Other revenue increased by 23% to $32 million. It is clear that Ridesharing grew much slower than other segments of the massive business.
Other Highlight
41% YoY growth of Gross Bookings in Q1 2019 (at constant currency and excluding the impact of our 2018 Divested Operations): Demonstrating the power of Uber Platform, total company gross bookings grew 41% YoY similar to Q4 2018’s 43% YoY. Foreign currency negatively impacted reported gross bookings growth by 7% in Q1 2019 and 6% in Q4 2018.
Core Platform loyalty program launched nationally in the US: Uber Rewards, its consumer loyalty program, was expanded throughout the United States in March 2019. Under this program, consumers can earn points through spending on Uber’s Core Platform. Based on the number of points that users have, they can achieve Gold, Platinum, and Diamond status. And they will receive benefits corresponding to the status they are.
Driver rewards program expands across the US: Uber Pro, a driver rewards programs, launched in 10 cities during Q1 2019, now have been expanded across the US. If the drivers achieve Gold, Platinum, or Diamond status, they will have discounts in gas and car maintenance. Moreover, they can access to a tuition-free college education at Arizona State University Online through enrollment reimbursement.
Improved restaurant selection helps to drive Uber Eats growth: Uber Eats partner has continued to grow independent and small chain restaurant selection. Uber also continue to expand large chain partnerships, including with Starbucks in seven large US cities and international pilot cities. It launched the “aggregator” delivery model in select markets and well-received by restaurant partners of all sizes.
Uber Freight tackles opportunity with disruptive technology: After one year and a half, Uber logistics on-demand team has contracted with over 36,000 carriers with more than 400,000 drivers and have served over 1,000 shippers, including global enterprises such as Anheuser-Busch InBev, Niagara, Land O’Lakes, and Colgate-Palmolive.
New Mobility (NeMo) launches new JUMP bike hardware and Transit, in-app public transportation options: Uber launched a new JUMP eBike in January 2019. It improved connectivity, is more durable, and has a swappable battery. It also launched the first public transit product in partnership with the City of Denver in the United States.
Advanced Technologies Group (ATG) receives investment: Toyota, DENSO, and SoftBank Vision Fund agreed to invest an aggregate of $1 billion in Uber ATG business. This investment and expanded commercial partnership will further deepen the ATG-Toyota collaboration on next-generation autonomous vehicles. Uber currently expect the investment to close in July 2019.
Announced the acquisition of Careem: Uber acquired Careem, a ridesharing, meal delivery, and payments company for $3.1 billion with $1.4 billion in cash and $1.7 billion in unsecured convertible notes. After closing this acquisition, Careem will become a wholly-owned subsidiary of Uber. However, it still operates as an independent company under the Careem brand.
Balance sheet strengthened: In May 2019, Uber raised approximately $8.0 billion net proceeds. Separately, it received a $500 million private placement investment from PayPal and continue to work with the company to drive digital payment efficiencies.
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