Uber Posts $1 Bln Loss in Q1 2019

In a competitive market, holding onto top spot often requires dropping prices.

Uber is holding off rivals like Chinese competitor Didi Chuxing and Indian Ola in more than 700 cities around the world.

The US company reported a $1 billion loss in Q1 2019 and is expected to lose more billions next year.

According to Uber's chief technology officer Thuan Pham, the transportation network company could take years before it experiences revenue.

"The industry right now is very competitive. We have local competitors everywhere trying to aggressively expand to grow their businesses, and we have to compete vigorously," Pham said at a tech conference on Tuesday.

Uber's top executive predicts that many competitive businesses such as rival Lyft will soon go public in the US.

Even if Uber reports a profit in the long run, the company's business model was designed to collect low-profit margins. "We have lots of transactions and maybe make a few pennies per transaction," he added.

[caption id="attachment_64017" align="aligncenter" width="800"] Uber's revenue and Earnings before interest, tax, depreciation and amortization (EBITDA) chart[/caption]

On the contrary, Amazon made a record profit of $3.6 billion in Q1 2019, nonetheless, its revenue has lagged.

Uber, which went public last May, is currently struggling to attract investors, who are concerned about its steep losses and limited yields.

In the meantime, The US company is hanging all of its hopes on autonomous cars.

Last April, it secured around $1 billion in funds, increasing Uber's Advanced Technologies Group value to $7.25 billion.

However, Uber's hopes despaired after an autonomous car struck a pedestrian was killed last March in Arizona.