Uber firm reported a $1 billion loss on Thursday, as the ride-hailing service spends heavily to build up its food delivery and freight businesses, sending revenues up 20% in its first quarterly report as a public company, according to Reuters.
Uber lost $4.46 billion in calendar year 2017 on a GAAP basis and it suffered a relatively modest $370 million GAAP loss in 2018, largely thanks to a one-time boost from a multi-billion dollar deal with Yandex.
The firm raised $8.1 billion in its initial public offering earlier this year, so the company can sustain losses like this for several more quarters at least with the stock rising around1% in the hours after the results were announced.
After a conference call from Chief Executive Dara Khosrowshahi with executives, he reported that shares rose 2.6% which including fewer consumer promotions in the second quarter, but called 2019 an investment year.
Uber was the biggest of a group of Silicon Valley startups that have gone public this year against the backdrop of a global stock market sell-off sparked by renewed trade tensions between the United States and China.
Also, it faces increased regulation in several countries and fights with its drivers over wages.