Uber Loses $5.98N Updates: Uber, the ride hailing and delivery service, has lost $5.9 billion (£4.7 billion) due to its investments in other companies.Almost all of the loss, according to the firm, was caused by a drop in the value of investments in businesses such as Didi in China and Grab in Southeast Asia.Didi and Grab’s stock has plummeted since they went public in New York last year.Despite the setback, Uber’s CEO emphasised the company’s efforts in recovering from the pandemic’s effects.”Our results demonstrate how far we’ve gone in navigating our way out of the pandemic and how our platform’s power is differentiating our business performance,” CEO Dara Khosrowshahi said. This came as the company revealed that the number of trips taken climbed by 18% in the three months running up to the end of March compared to the same period last year.
About Uber Loses $5.98N
This resulted in a 136 percent increase in revenue.Uber’s first quarter loss increased to $5.9 billion from $108 million a year ago, owing to a $5.6 billion reduction in the value of its holdings in other companies, particularly Chinese ride hailing operator Didi.Uber, on the other hand, has enough capital to hold on to those losing stakes and sell them at a later date, according to chief financial officer Nelson Chai.Its stock fell 4.65 percent in Wednesday’s New York trading session.Due to fierce competition in China, Uber sold its business in the world’s second largest economy to Didi in exchange for an 18% stake in the Beijing based company in 2016.Didi’s market capitalization in the United States has dropped by more than 80% since its $4.4 billion NYSE debut last summer.
China’s internet authority ordered online businesses not to sell Didi’s app within days of its IPO, claiming it illegally acquired users’ personal data.The company announced in December that it would delist from the NYSE and list in Hong Kong.Didi confirmed this week that the US Securities and Exchange Commission was looking into its initial public offering (IPO).Uber sold its businesses in Southeast Asia to Grab for a 27.5 percent ownership in the Singapore based company in 2018, when both companies were still privately owned.Grab’s stock plummeted after its first public offering on the Nasdaq stock exchange in December of last year.Its stock market value has plummeted by about 75% since its IPO, which was the largest ever by a South East Asian company in the United States.In exchange for its Uber Eats operations in India, Uber received a share in Indian food delivery firm Zomato in 2020.Since its fantastic stock market debut in July, Zomato’s shares have nearly halved in value.