Uber once again losing money, but promises to be profitable in 2020

the taxi Service Uber Technologies Inc. plans to make a profit by the end of 2020, earlier than previously expected, the company said during the announcement of the financial results. The shares responded with a rise of 10%.

However, the company is still losing money. Net loss for the year 2019 amounted to $ 8.5 billion against a profit of 997 million dollars a year earlier. Diluted loss per share amounted to 6.81 USD. Revenue increased by 25% to 14,147 billion.

For the fourth quarter adjusted revenue totaled Uber 3,73 billion, in line with market expectations. Loss per share – 0.64 dollar against the expected $0.65 dollar. Adjusted net loss: 615 million dollars expected by analysts of $ 713 million.

“2019 was a transformative year for Uber, and I am pleased with our progress, steadily fulfilling the commitments that we took to our shareholders on our path to profitability,” said CEO Dara Khosrowshahi.

the CEO also said that Uber carries a plan EBITDA margin for the fourth quarter of 2020. In November 2019 Khosrowshahi announced that the company plans to cut costs and get profit in 2021, at the same time, Uber has reported a net loss of approximately $1.2 billion in the third quarter.

According to the head of Uber in the future, the company plans to cut costs and try to increase the demand for travel on the premium cars. In addition, the company wants to accelerate the growth of its business to deliver products, Uber Eats. The income of this unit for the delivery of food products increased by 73% compared to last year and amounted to 734 million dollars. In an attempt to reduce losses, Uber has sold its Indian business Uber Eats local competitor Zomato for almost 10% stake in the business worth $ 250 million.

since the launch Uber Eats in India in 2017, the company spent considerable funds to provide discounts to compete with the Indian companies, including Zomato, which has been active in India since 2008, the funding Company Ant Financial Services Group (“daughter” of the Chinese Alibaba).

the Service for ordering Freight transportation, Uber more than doubled its revenue thanks to a new web portal, launched in the third quarter.

In recent months the company has taken steps to limit expenses including, at least two major rounds of layoffs. However, it is unclear how this may affect the total number of staff as Uber opens new offices in Chicago and Dallas.

In early November, 2019 the stock Uber has updated the record minimum. Then expired six-month ban on the sale of shares to the founders of Uber since its IPO, held in may 2019. Therefore, the co-founder and former CEO of Uber Technologies Inc. Travis Kalanick last week sold shares in the company more than $2.5 billion

According to the WSJ sources, he has long been disappointed about the current management team Uber and actions of investors. The former head of Uber has sold almost 90% of its shares and now it is nearly $3 billion in shares were only $250 million December 31, the company’s founder left the Board of Directors. According to him, now that Uber is a public company, he wants to focus on its current business and charitable activities.