Uber's first profit report after I.P.O: $ 1 billion loss
Uber's shares, which have fallen from the offer price of $ 45, rose in later trading on Thursday. Kathleen Smith, a rector of Renaissance Capital, who manages stock exchange fund focused on I.P.O.s., said Wall Street had expected the losses and slowed growth because Uber had indicated them in its I.P.O. paperwork.
"If Uber does nothing worse than said, it may be a good result for them," she said.
The company's results contained some bright spots. Uber has a long history of fighting competitors in fierce price wars, offering subsidies to riders and drivers. But Mr. Khosrowshahi said these battles began to decline, with competitors focusing on branding and products rather than paying incentives. He called it "a healthy trend".
Some of Uber's newer businesses, such as food delivery and shipping, also grew at a healthy pace. Uber Eats, the meal delivery service, more than doubled from the previous year, while Freight skipped 200 percent. The company is expanding Uber Eats in Latin America and Japan, where driving is not allowed.
In an earnings call, some analysts raised questions about whether Uber Eats could sustain its growth in the face of heavy competition, and whether Uber's price war would shift from driving to food delivery. Mr Khosrowshahi said that Uber expected to remain the largest food supplier outside of China, whether it had its position through competition or by acquiring a competitor. Any acquisition would be a Plan B, he said.
He also faced questions about one of Uber's largest markets: New York. Recent city legislation requires a minimum wage for driving registers, which are classified as independent contractors rather than employees. As a result, rider hailing rates for New York passengers had increased significantly, Mr. Khosrowshahi said, and the volume of rides had fallen. Still, he said, the market remains valuable to Uber.
Mr. Khosrowshahi also addressed Ubers I.P.O. and said he was "proud of what we achieved." He added, "I've told our team, it's just a moment on a longer journey."
