The management was downsizing their marketing ‘staff aiming at 33% reduction in one thousand and two hundred personal force in an attempt to reduce cost and improve operational efficiency.
The reports show a 140% growth in active consumers by the Uber Eat having over three hundred thousand restaurants. This results in a revenue growth of over 70%. The reason behind the record losses by uber, as defined by the management, is the stock-based competition to the Employees as issued after the IPO.
Uber facing biggest-ever quarterly loss
Apart from the stock based expenses, Uber’s losses are recorded to 130% of the first quarter. This was the slowest ever growth by the Uber stock i.e 14% per annum.
Uber announced their earnings on Thursday, august 9, 2019, following the decorations of their arch Rivals Lyft on Wednesday.
The comparison of the two companies for the second quarter of the Year appear as below; Uber accommodated a revenue of $ 3.16 billion registering the quastly losses of $ 5.2 billion. Lyft on the other hand released their quarty revenue of dollar 85 million with net losses of $ 644 million.
Uber puts hands into grocery within $5bn loss
After facing their biggest quarterly loss, Uber closed over 90%, over 11% plunge on the news, at $ 42.8% per share compared to $ 45 per share-the IPO price. Uber performed slightly below the expectations of the stock analyst with a speculated revenues of $ 3.36 billion.
Nelson chi-the CFO mentioned, “which we will continue to invest aggressively growth, and this quarter we made good progress in that direction.”
Uber could not show a tidy performance following with the IPO. This might be resulted by an overrated private market valuation.