Uber loses $5 billion, misses Wall Street targets despite easing price war

Traffic Jam Uber Seen Posting Losses In Latest Quarter As Stock Still Stuck

But while Uber is offering fewer discounts, its staggering loss showed it is having trouble finding a path to profitability for its array of businesses - including ride-hailing, food delivery, scooters and freight.

Uber results weren't ideal, but it continues to be an industry leader posting double-digit revenue growth in an important and disruptive market. Lyft now predicts it will lose between $850 million and $875 million after expenses such as interest, taxes, depreciation and amortization in 2019, an improvement from the previous predicted loss of $1.15 billion to $1.175 billion. Uber Eats, its meal delivery service, continues to be a bright spot, with revenue growing 72% from the prior year.

Smaller rival Lyft Inc said on Wednesday pricing had become "more rational", meaning the company should spend less on promotions and incentives to win market share.

Lyft, on the other hand, reported better-than-anticipated revenue growth and other positive metrics on Wednesday, despite a US$644 million loss for the quarter.

But that didn't stop Uber's share price tumbling 13% in after-hours trading.

Uber reported that revenue growth slowed to 14% to $3.2 billion and fell short of the average analyst estimate of $3.36 billion, according to IBES data from Refinitiv.

With the revised guidance, the company estimates that 2018 may have been the peak loss year, and expects to lose less money in 2020, said Brian Roberts, chief financial officer, in a conference call with investors.

Gross bookings, which is the total dollar value of rides and Uber Eats meals and the amount paid by freight shippers, reached $15.76 billion, up 31% - or 37% in constant currency - compared with the same time previous year.

Uber has set its sights on becoming a global one-stop-shop for transportation and logistics, competing not just with ride-hailing rivals but tech giants such as Amazon.

Khosrowshahi said he's confident in the scale of Uber's ridesharing business and its technical capabilities.

Uber has consistently said 2019 was expected to be an investment year.

Both the companies have historically relied on subsidization to attract riders and have been spending heavily to expand services into areas such as self-driving technology for Lyft and food delivery for Uber.

Research and development costs for the six months ended June 30 were $3.47 billion. It also topped Wall Street targets of a $996 million loss.

The San Francisco company said revenue grew 14 percent to $3.2 billion but it lost $5.2 billion as compared to losing $848 million in the same period previous year.

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