Yes, it's going to be a LONG road to profitability for Uber...
Uber Technologies Inc. shares plunged 12% in the extended session Thursday after the ride-hailing service reported a whopping $5.24 billion quarterly loss.
“What Uber has yet to prove is if the cost of the ride can cover the operating expenses,” Beth Kindig, a technology analyst in San Francisco, told MarketWatch in a phone interview. “I don’t like the price war narrative. What we know is that gross bookings are growing but revenue is in the low double digits while losses are accelerating due to subsidizing rides.”
“I think that there’s a meme around which is, can Uber ever be profitable,” he later acknowledged. “I think that myself and the team are well prepared, but I think we are very very early in this incredible journey.” The company has endured a gantlet of unsettling events since it announced it lost more than $1 billion during its first-quarter results and limped through its slowest growth in years.
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