A little over one year has passed since Uber’s then-CEO Travis Kalanick was forced out and this week the ride-hailing company posted new financials that showed continued growth with narrowing losses as it marches toward a possible 2019 IPO.
On Wednesday, the company posted an $891 million loss for its second quarter in comparison with a loss of over $1 billion during the same three-month period one year ago. During the quarter more than $12.01 billion was earned from gross bookings, which are the amount riders pay and food deliveries. That was up 41% from the same period in 2017. After fees paid to its drivers, revenue at Uber was $2.7 billion.
Last quarter, when Uber posted a profit because it liquidated business in Southeast Asia and Russia, it warned that the jump would not last due to its plans to reinvest that money.
Uber does not need to disclose its earnings since it’s privately held. However, it has publicly done so on a regular basis. Investors are scrutinizing the numbers at Uber closely because the company is one of the most highly valued private businesses in the world at $62 billion and is planning to offer an initial public offering before the end of next year. Estimates are the IPO could be one of the biggest ever in the tech industry.
Uber’s most recent results indicate there was little chance to the financial trajectory it has seen under CEO Dara Khosrowshahi.
Under Khosrowshahi, Uber has tried to repair its reputation following a series of controversies at the workplace.
Over recent months, the CEO has shed a few of the businesses that were losing money at Uber in regions that includes Russia, flown to different areas around to the world to speak with local regulators, settled lawsuits and launched the company’s new marketing campaign.
However, new crises have raised their head as well including a woman hit by a self-driving Uber vehicle in Arizona last March, several departures of executives, and questions internally about the behavior of Barney Harford, who Khosrowshahi personally picked for his No. 2.
Last week, legislation was passed in New York City to stop new vehicle licenses for services of ride-hailing, potentially putting a cap on the growth of Uber in one of its largest markets.