Uber announced revenue growth of 30% to $3.8 billion in Q3 2019 compared to $2.9 billion the previous year.
But that didn’t stop investors from criticising the fact that the popular ride-hailing app lost $1 billion in the last quarter.
The company’s ride segment is showing growth, CEO Dara Khosrowshahi pointed out in a statement.
“Rides Adjusted EBITDA is up 52% year-over-year and now more than covers our corporate overhead. Revenue growth and take rates in our Eats business also accelerated nicely. We’re pleased to see the impact that continued category leadership, greater financial discipline, and an industry-wide shift towards healthier growth are already having on our financial performance.”
Gross bookings rose to $16.5 billion, marking a 29% increase year-on-year.
The company’s EBITDA loss was slightly lower ($631 million) in Q3 than that in Q2 ($656 million). But shareholders remain disappointed, and The Wall Street Journal estimates that they may dump up to 1.7 billion shares on the market.
Uber plans to merge its ride-hailing app with its food delivery app by the end of the year in hopes of driving more business to Uber Eats that way.
According to research by Edison Trends, 25% of Americans are using UberEats in 2019, edging closer to competitors DoorDash (28%) and GrubHub (27%).
Whilst Uber is increasingly pressured to outperform rival Lyft, Khosrowshahi remains positive that the company can achieve profitability by 2021.
“The investors are expecting profitability going forward. I think our rides business is the most mature business, so it is going to enter in an area of profitability sooner than our other businesses. With Eats, we’re looking to get into number one or two position in every market that we compete with. And I think our investors expect us to deliver,” he told CNBC.