The VTC company, which is preparing to go public very soon, continues to lose dollars in the hundreds of millions.
Unlike France, American companies can afford to make huge losses in the first years of their existence, driven by the idea that investments will eventually pay. Some digital giants, such as the Gafa, have succeeded, some are still waiting (Snap), and others have waited to land on the stock market to become profitable (like Twitter, which is only since 2018 however). For its part, Uber is counting on its next IPO to get the machine off the ground.
Bookings will increase sharply
Meanwhile, the VTC firm has continued to record significant net losses, estimated at $ 865 million in the fourth quarter of 2018. Compared with the same period a year earlier, the deficit is still reduced, since it reached $ 1.1 billion at the end of 2017.
Uber also announced that it generated net sales of $ 3.02 billion in the fourth quarter, up 25% year-on-year. Gross bookings reached $ 14.2 billion in the last three months of the year, up sharply (+ 37%) from the previous year.
Uber believes in its capabilities and does not skimp on investments
In fact, the quarterly net loss data is not so alarming. Uber is willing to invest heavily to push back competitors and continue to assert itself on activities other than the VTC such as food delivery, but also scooter stations, electric bikes and car rental between individuals.
Recruit drivers, expand into new markets, launch new businesses and lower prices to avoid allowing competition to intensify … All at a price for Uber. And the company does not forget its autonomous car program, which should not bring back money for many years, and which has been momentarily stopped after the fatal accident caused by one of his vehicles in March 2018.