8. August (Reuters) – Uber Technologies Inc reported lower-than-expected earnings for the second quarter on Thursday, sending shares down 12% as the largest U.S. ride-hailing company failed to show expected benefits in easing price competition.  Uber's losses also expanded to $ 5.24 billion, or $ 4.72 per share, in the quarter ended June 30 from $ 878 million, or $ 2.01 per share, a year earlier, reflecting 3, $ 9 billion in share-based compensation expenses related to the IPO earlier. year.
CEO Dara Khosrowshahi said in a press release that the competitive environment is starting to rationalize and it has been "gradually improving" since the first quarter.
Smaller rival Lyft Inc said prices on Wednesday had become "more rational," meaning the company should spend less on promotions and incentives to gain market share. That lifted the revenue outlook Wednesday. Lyft shares fell 2%, according to Uber's report. Both companies had had an increase in ordinary trading.
Ubers Khosrowshahi said the company is making its decision separate from Lyft.
Both companies have historically relied on subsidization to attract cyclists and have spent a lot on expanding services in areas such as self-driving technology for Lyft and food delivery to Uber.
Uber's expenses rose 147% to $ 8.65 billion during the quarter, including a sharp increase in research and development spending.
"While we want to continue To invest aggressively in growth, we also want healthy growth, and this quarter we have made good progress in that direction," said CFO Nelson Chai in a statement.
Total revenue rose 14.4% to $ 3.17 billion, but fell below the analysts' estimate of $ 3.36 billion, according to IBES data from Refinitive.
The company, which has not yet made it clear whether it will make money, is trying to convince investors that g order comes not only from its shipping services, but also from other logistics and food delivery services.
Gross bookings, a measure of the total value of rides before driver costs and other expenses, rose 31% from the previous year to $ 15.76 billion. On average, analysts expected $ 15.80 billion.
Uber said monthly active users rose to 99 million globally, from 93 million at the end of the first quarter and 76 million the year before.
(Reporting by Vibhuti Sharma in Bengaluru and Alexandria Sage in San Francisco; Editing by Arun Koyyur and Lisa Shumaker)