Uber narrows losses but fails to turn a profit, dampening IPO hopes

Ride hailing firm’s CEO Dara Khosrowshahi previously said company could float by 2020

Uber narrowed its losses in the second quarter, but failed to turn a profit, the ride hailing app’s latest financial results show.

The company reported a loss of $891m (£700m) for the quarter, a 16 per cent improvement on the $1.1bn loss recorded the same period of the previous year, but down from a $2.5bn profit in the first quarter of 2018.

The losses continued as Uber ramped up spending on new markets, such as India and the Middle East, and its food delivery business. The firm has also been tied up in a number of costly legal battles.

Meanwhile, Uber investors have reportedly told the company to sell its self-driving car unit after it racked up losses of between $125m and $200m.

Revenue was up 51 per cent to $2.7bn, however, growth slowed compared to the first quarter, and gross bookings rose 41 per cent to $12bn.

Uber chief executive Dara Khosrowshahi has previously hinted that the company may float on the stock market by 2020, however, analysts are looking for profitability before the firm goes public.

Mr Khosrowshahi said: “We had another great quarter, continuing to grow at an impressive rate for a business of our scale.”

He was brought in one year ago after Uber suffered a series of setbacks, including allegations of sexual assaults committed by its drivers, sexual harassment within the company and a legal battle with Google, which ultimately forced the departure of founder Travis Kalanick.

Since joining, Mr Khosrowshahi has faced further difficulties, with a number of major cities banning Uber from operating.

Last year, Transport for London revoked Uber’s licence to operate in the capital. The decision was overturned by a London court in June this year.

Additional reporting by newswires