Company Watch: Uber Reports $1.8 Billion In Losses Last Year And $3 Billion In Q4 Revenue
Uber's 2018 results revealed that the company, now under new CEO Dara Khosrowshahi, lost $1.8 billion for the entire year but earned $3 billion during the fourth quarter. The figures indicate growth in the company compared to 2017 records.
On Friday, the California-based company released its annual results for 2018 that represented growth from the previous year when it recorded $2.2 billion in losses, CNN Business reported.
Despite the losses incurred, Uber also increased revenue as it reported $3 billion in the third quarter, a figure that's 25 percent higher from the same quarter in 2017. On the other hand, it is worth noting that the corporation sold off its Southeast Asian business to Grab last year.
Uber Chief Financial Officer Nelson Chai said in a statement, "In 2018, our ridesharing business maintained category leadership in all regions we serve," adding that Uber Freight saw significant gains in the United States.
Chai said the company believes that Uber Eats turned out to become the biggest online food delivery service outside of China, as represented by its gross total bookings. He also cited JUMP e-bikes and e-scooters as a sales driver.
Last year's figures came after Khosrowshahi took over the CEO post following controversies that put the company in the hot seat. Analysts believe he was hired to help clean up multiple issues that Uber was embroiled in, including sexual harassment allegations.
The popular e-hailing company was also involved in a case with Google's Waymo wherein the latter accused Uber of trading confidential technology information. The two parties finally agreed on a settlement in February 2018.
Meanwhile, Uber filed a lawsuit against New York City for the local government's decision to put a lid on the number of ride-hailing drivers. The company reportedly wants to overturn the local law that provides regulators with more control of companies that capitalize on the e-hailing business.
According to The Verge, NYC Mayor Bill de Blasio explained in a recent radio interview that the local government will keep placing caps on autos for hire while working "to increase the wages and benefits [of] the drivers."
A spokesperson for the ride-hailing company said that New York's new law is actually blocking new drivers from experiencing the benefits of the wage hike. He explained that while Uber understands the state's goals of reducing the number of vehicles that congests the city, the company also believes that congestion pricing is a better method than putting a cap on new licenses.