Losing Money

Uber continues to lose money as it scales scooters, bikes and other newer businesses

Megan Rose Dickey@meganrosedickey


Uber,  which is expected to go public sometime next year, just released its Q3 2018 financial results. Uber’s net losses increased 32 percent quarter over quarter to $939 million on a pro forma basis, though Uber expected these losses as it continues to invest in future growth areas.


On an earnings before interest, taxes, depreciation and amortization basis (EBIDTA), Uber’s losses were $527 million, up about 21 percent quarter over quarter. And as Uber prepares to go public, the company has started presenting the income statements with stock-based compensation.

Ten years from now, Uber CEO Dara Khosrowshahi envisions its core ride-hailing business accounting for less than 50 percent of Uber’s overall business, Khosrowshahi told me at TechCrunch Disrupt SF 2018. That means Uber expects businesses like Eats, scooters, bikes and freight to contribute to be more of Uber’s business, which requires Uber to invest heavily in those businesses.

Revenue for Q3 was up five percent quarter over quarter at $2.95 billion and up 38 percent year over year. Meanwhile, gross bookings were up six percent quarter over quarter and 34 percent year over year at $12.7 billion.

Uber, for the first time, has also broken out Eats specific gross bookings, which the company says accounted for $2.1 billion of overall gross bookings and is growing over 150 percent year over year. Last month, Uber announced its intention to expand Eats to cover 70 percent of the U.S. population by the end of this year.

Other key stats for Uber’s Q3 2018:

• Adjusted EBITDA margin: 4.1 percent of gross bookings (In Q3 2017, that was 6.4 percent)
• Gross cash: $6.55 billion, not including the $500 million from Toyota or the $2 billion from debt offering

This is Uber’s first quarterly earnings report under CFO Nelson Chai. Uber, which had been without a CFO for more than three years, brought on Chai just three months ago.

“We had another strong quarter for a business of our size and global scope,” Uber Chief Financial Officer Nelson Chai said in a statement. “As we look ahead to an IPO and beyond, we are investing in future growth across our platform, including in food, freight, electric bikes and scooters, and high-potential markets in India and the Middle East where we continue to solidify our leadership position.”