Along for the Ride
A year after joining Uber Technologies Inc., Chief Executive Dara Khosrowshahi is showing signs he can maintain the ride-hailing firm’s rapid pace of revenue growth while reining in some of its substantial losses.
The San Francisco-based company’s second-quarter revenue rose 63% from the prior year to $2.8 billion, while gross bookings, a measure of the overall demand for its ride and delivery services, jumped 41% to about $12 billion, according to a financial statement released by Uber.
Uber is not required to disclose earnings because it is privately held, but it has made a habit of publicly releasing its numbers. Investors are closely scrutinizing Uber’s financials because the company is one of the world’s most highly valued private firms, at $62 billion, and is preparing to go public by the end of 2019. Its I.P.O. is expected to be one of the biggest ever for a tech company.
Uber’s latest quarterly results indicate little change to its financial trajectory under Dara Khosrowshahi, who became the company’s new chief executive last August. Mr. Khosrowshahi was brought in to clean up the toxic workplace culture at Uber under his predecessor, Mr. Kalanick, and to get the company ready for an I.P.O. The company’s no-holds-barred approach to barreling into markets and flouting regulations, Mr. Khosrowshahi has said, had served it in the past but would not get the company to “the next level.”
But Uber continues to face challenges, such as regulatory hurdles. Last week, New York became the first American city to limit the number of ride-sharing vehicles and to require companies like Uber and Lyft to pay drivers a minimum rate. Its self-driving car efforts have also faced setbacks. Earlier this year, an autonomous Uber SUV struck and killed a pedestrian in Tempe, Arizona.