Uber reports loss of $1 billion in the first quarter post IPO

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Uber Techologies has posted a loss of Dollars 1 billion for the first quarter, in the first set of financial figures after a disappointing IPO on the New York Stock Exchange earlier in May, the BBC reports.

Uber published this Thursday its first quarterly report since it is a public company in which it reported sales in the first quarter above expectations.

The company, which pulled off the biggest tech flotation in five years last month, posted the loss despite quarterly revenues climbing 20pc to $3.1bn.

Concerns about Uber's ability to achieve profitability, stave off competition from other ride-share firms and slowing revenue growth have weighed on the company's stock since its lukewarm debut on the New York Stock Exchange earlier this month. Also in this quarter, the firm gave 1.55 billion rides, an increase of 36% from 1.14 billion previous year.

Uber's arc mirrors that of its rival Lyft, which went public in March.

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Uber reported that it is prepared to continue investing in the company's global expansion, according to the company's financial director, Nelson Chai, in a statement.

"Historically we have priced POOL very aggressively in order to create (the) opportunity to match", Uber CEO Dara Khosrowshahi said. Uber Eats, its meal delivery service, more than doubled from a year earlier, while Freight jumped more than 200%.

Khosrowshahi said there "absolutely will be consolidation" and signaled that Uber could take part in any acquisitions that make long-term sense. "In India, increased incentives to consumers, drivers and restaurants drove almost half of the decline in UberEats' take rate to 8% from 12% a year ago", Uber's chief financial officer, Nelson Chai, told analysts on a call post the announcement of the company's results. Uber Rewards, its loyalty programme, was expanded throughout the United States in March, where consumers can earn points by sending on its core platform and later receive benefits like flexible cancellation. The company has cited competitive pressures prevalent in the ride-sharing industry, and the cost of signing drivers and payment to restaurants for Uber Eats as the reasons for their dwindling take rate and declining income. At the same time, revenues only increased by 20%.

For ride-hailing, Uber's core business, revenues grew 26% in the US and Canada to $1.8 billion, and 26% in Europe, the Middle East and Africa to $487 million.