Uber lost more than $5 billion last quarter -- its biggest loss ever

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Uber's shares fell 11 per cent in after-hours trading.

"Uber has turned into the magical money burning machine". Uber's stock had rallied earlier on Thursday, ending the day up more than 8%, after rival Lyft updated its forecast for the year to indicate faster than expected revenue growth and narrower than expected losses.

Total revenue rose 14.4% to $3.2bn, but fell short of average analysts' estimates of $3.4bn.

Stock related compensation expenses took a huge bite out of its revenue, according to Uber, which operates ride hailing in global markets and has several related transportation services. The company's core business, ride-hailing, grew revenue only 2% to $2.3 billion.

Uber results weren't ideal, but it continues to be an industry leader posting double-digit revenue growth in an important and disruptive market.

The company is locked in competition with its rival Lyft and is spending on a range of newer businesses including food delivery, Uber Eats, and freight. The company also has been offering public transit information in its app in eight markets, which can be combined with Lyft's shared bikes or scooters, he added.

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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.

This year would be the peak for investment and losses would lessen in 2020 and 2021, he said. It raised its revenue outlook on Wednesday.

"While we will continue to invest aggressively in growth, we also want it to be healthy growth, and this quarter we made good progress in that direction", Chief Financial Officer Nelson Chai said in a statement.

Uber's costs rose 147% to $8.65 billion in the quarter, including a sharp rise in spending for research and development. Other Bets revenue increased 175 percent year-over-year to $195 million with gross bookings coming in at $182 million, 153 percent higher year-over-year.

He does not expect the Eats food delivery business to be profitable next year or the year after, but said "I think what we have is a great combination of a ride business that is going to turn more profitable over the next couple years, that will allow us to invest aggressively in the Eats business and also carry a bottom line that improves". But the company also said it laid off 400 members of its global marketing team this summer - about a third of its communications staff. Uber also faced stiff competition in Latin America, where its reported revenue fell by almost a quarter compared with the same period a year ago.

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