As Uber Eats Helps to Sink Shares, Questioning the Gig-Economy

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"Our results this quarter decisively demonstrate the growing profitability of our Rides segment", said Uber chief executive Dara Khosrowshahi.

In its third-quarter results released after the market close on Monday, Uber posted an 18% steeper loss compared to the same period a year ago, which included US$401mln in stock-based compensation given to its employees.

But Uber lost $1.16 billion in the quarter, extending its streak of losses. Gross bookings, which include ride-hailing, mobility, food delivery and freight payments, rose 29% from a year earlier to $16.47 billion. Monthly active platform users, meaning those who ordered food or a ride one or more times during the quarter, was 103 million, up 26%.

The ride hailing firm posted a net loss of $1.2 billion, or 68 cents per share. Revenue for the quarter was $3.8 billion, with growth accelerating 30 percent year-over-year.

In an investor call following the release, Khosrowshahi said that "we know there is the expectation of profitability and we expect to deliver for 2021".

Revenue for Uber Eats totaled United States dollars 645 Million, representing a 64% increase year-over-year.

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.

It was announced earlier this week that Uber has added a $4 surcharge specifically for guest pickups at Universal Orlando Resort. But Uber's profitability was dragged down by losses in its other businesses-mainly a $316 million reduction from Uber Eats.

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Uber's stock price, closed Monday at $31.08, has lost almost a third of its value since its initial public offering in May. Cornershop now operates in several Latin American countries, but Gupta said Uber eventually intends to expand the service outside of the region.

© Provided by The Associated Press FILE - In this May 28, 2019, file photo Jump electric bike share bicycles by Uber are seen along Mission Beach boardwalk in San Diego. Now, the company reported its third quarter earnings which show it is continuing its losing streak, causing its stock to go down almost 7% following the report. Uber increased its guidance by USD 250 Million and also expects an adjusted EBITDA loss of USD 2.8 Billion to USD 2.9 Billion for the year.

Known for its ride-hailing app available in more than 700 cities worldwide, Uber has vastly diversified its business over the past years.

Most investors remain focused on the company's lock-up period that ends Wednesday, Nov. 6.

Analysts had expected Uber to report stronger revenue and a narrower loss, given the cutbacks and other efforts to make the company run more efficiently.

Khosrowshahi on Monday said he was hoping USA politicians would be willing to work with the industry.

No evidence yet that Uber has been able to stabilize bookings growth via a reduction in incentives offered to both drivers and riders.

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