Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Vodacom’s Maziv deal gets makeover ahead of crucial hearing

      18 July 2025

      Takealot taps Mr D to deliver toys, pet food and future growth

      18 July 2025

      Cut electricity prices for data centres: Andile Ngcaba

      18 July 2025

      ‘Oh, Ani!’: Elon’s edgy bot stirs ethical storm

      18 July 2025

      Trump U-turn on Nvidia spurs talk of grand bargain with China

      18 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025
    • In-depth

      The 1940s visionary who imagined the Information Age

      14 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025
    • TCS

      TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

      16 July 2025

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025
    • Opinion

      A smarter approach to digital transformation in ICT distribution

      15 July 2025

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Motoring » Uber reports disappointing user growth

    Uber reports disappointing user growth

    By Agency Staff5 November 2019
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Uber Technologies disappointed investors with quarterly results showing lacklustre gains in bookings and monthly active users, two of the metrics most closely watched by Wall Street.

    The ride-hailing company beat estimates for quarterly revenue and loss, improved its annual loss forecast and pledged to turn a profit by 2021. Those weren’t enough to lift the stock, though. Shares were down about 5% in extended trading after the results.

    The San Francisco-based company is seeking to assure investors it can evolve from a ride-hailing service to a global all-in-one transportation platform. There could be more pressure on Uber shares on Wednesday, when a stock lock-up for a large swath of shareholders expires. An additional 1.5 billion shares could be eligible to trade according to Renaissance Capital, nearly doubling the total number outstanding. Of venture-backed companies, only Alibaba Group had a larger lock-up of 1.6 billion shares.

    Uber executives said the company would spend less aggressively and turn an adjusted profit in 2021

    While Uber’s overall results were good, uncertainty about the possibility of new shares flooding the market cast a shadow that may have depressed share price, said Ali Mogharabi, an analyst at Morningstar.

    “It may be people getting out now, thinking that after Wednesday it’ll drop,” he said.

    On a conference call with reporters following the report, Uber executives said the company would spend less aggressively and turn an adjusted profit in 2021. “We will be driving discipline across the company and only doing investments that we can afford,” said CEO Dara Khosrowshahi.

    The forecast echoed a commitment from Uber’s smaller rival, Lyft, which said it would be profitable by the fourth quarter of 2021, a year earlier than previously expected. Lyft, which focuses exclusively on transportation, blew past analysts’ third quarter estimates when it reported results last week.

    Job cuts

    Khosrowshahi has sought to rein in spending, slicing roughly 1 200 positions from sales and marketing, engineering and product. Like Lyft, Uber has also cut back on rider discounts and driver incentives in a bid to improve margins and narrow losses. Khosrowshahi said on the call that Uber would exit markets and dispose of assets where it was clear it could not command number one or number two positions within the next 18 months.

    Uber’s business strategy hinges on convincing existing ride-hailing customers to use more services, including bikes, scooters, helicopters and public transportation, as well as food and grocery delivery. Uber’s newer initiatives, including a job matching service for gig workers in Chicago and financial services for drivers, further demonstrate the company’s grand ambitions.

    Since going public in May, Uber investors have punished the company for its growth-at-all-costs strategy. The stock closed Monday at US$31.08, well below the $45 listing price.

    Although profitability may still be a couple years away, it’s earlier than analysts expected. Uber ended the third quarter with about $12.7-billion in cash, suggesting it can continue investing in growth where it doesn’t expect continued losses. Adjusted loss for the quarter widened to $585-million, compared to $485-million during the same period last year, but was still better than an average of analysts’ estimates of $808-million.

    Quarterly adjusted revenue increased 33% to $3.5-billion, above estimates of $3.39-billion. Uber revised its annual loss forecast to between $2.8-billion and $2.9-billion, an improvement of $250-million.

    It’ll need to do more to attract customers. Monthly active platform users, meaning those who ordered food or a ride one or more times during the quarter, was 103 million, up 26%. Analysts expected 107 million. Gross bookings, a measure of the total value of rides, food orders and other businesses, were $16.5-billion, compared to estimates of $16.7-billion. Food delivery was especially disappointing.

    More pricing pressure could come next year. California legislation designed to push Uber, Lyft, DoorDash and other gig-economy companies to reclassify independent contractors as employees goes into effect in January and could increase costs in the state by as much as 30%, according to analyst estimates. The three tech companies are gathering signatures now to challenge the law with a competing ballot initiative in a year.  — Reported by Lizette Chapman, with assistance from Ian King, (c) 2019 Bloomberg



    Dara Khosrowshahi Lyft Uber
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleVoyager 2 reveals cosmic findings after reaching interstellar space
    Next Article New gov’t website to make it easier to register a business

    Related Posts

    South African law is failing gig-economy workers

    12 June 2025

    ‘Afrikaans Uber’ sparks controversy

    27 January 2025

    Uber bakkie service launched in South Africa

    5 December 2024
    Company News

    Vertiv to acquire custom rack solutions manufacturer

    18 July 2025

    SA businesses embrace gen AI – but strategy and skills are lagging

    17 July 2025

    Ransomware in South Africa: the human factor behind the growing crisis

    16 July 2025
    Opinion

    A smarter approach to digital transformation in ICT distribution

    15 July 2025

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.