Despite an eventful initial public offering, IPO, Uber Technologies Inc. is recording its first losses as a public company.
In it’s first quarter result, Uber posted a $1 billion loss despite a 20% increase it’s revenue on a year on year basis.
The loss position was nearly accurate with its forecast for the quarter which was put at $1-$1.11 billion fist quarter loss.
The ride-hailing giant said pricing aggression by its rivals has slowed down compare to previous period.
Uber and it #1 competitor in the US, Lyft are now public companies. While Lyft was the first to file for for an IPO, the smaller player to Uber opted for the NASDAQ leaving Uber with no choice than to choose the NYSE.
The company said its gross booking for the quarter saw a 3.4% rise totalling $14 billion while cost rose by a whopping 35% as a result of pre-IPO publicity and marketing activities.
Uber has not turned a profit and it could take longer than expected as regulations and competitive pressure targets its markets by smaller and nich players.