Shares in Uber dropped 13% in after-hours trading yesterday after it announced a record $5 billion loss in the three months to June.
Having only recently joined the stock market, Uber’s loss widened dramatically from just $878 million in the same period last year.
Uber is spending heavily in a bid to expand and fend off competition from rivals Lyft, but Chief executive Dara Khosrowshahi believes that pressure is falling.
The company’s total costs jumped 147% to $8.7bn, but revenues rose by just 14% to $3.2bn. It fell below market expectations but also marks among its slowest revenue growth.
Gross bookings showed positive growth at 31% to $15.76bn, but did fall slightly below market expectations.