Aug 8, 2019

Uber stock price drops after missed Q2 expectations

Photo: Jaap Arriens/NurPhoto via Getty Images

Uber's stock price dropped by more than 12% after its Q2 revenue and losses missed analyst expectations.

By the numbers:

  • Revenue: $3.17 billion , versus $3.3 billion expected.
  • Net loss: $5.24 billion, versus losses of $3.4 billion expected. Uber says its losses include $298 million in IPO-related driver rewards and $3.9 billion in employee stock compensation.
  • Loss per share: $4.72, versus a loss of $3.19 per share expected.
  • Gross bookings: $15.76 billion, up 31% from a year ago.
  • Monthly active platform consumers: 99 million, up 30% from a year ago.

Yesterday, rival Lyft posted better-than-expected revenue for Q2 and raised its outlook for the rest of 2019.

Go deeper

Lyft eases off price war post-IPO

Photo: TIMOTHY A. CLARY/AFP/Getty Images

Since going public in March, Lyft is now easing off its price-cut war with rival Uber, instead competing on “brand and experience."

The bottom line: As part of its Q2 earnings, the company revealed that its sales and marketing expenses for incentives — meaning ride "coupons" — have dropped by 40% from the first quarter. It’s also quietly raising some prices at the end of June to improve its margins.

Go deeperArrowAug 8, 2019

WeWork files for long-awaited IPO

Illustration: Rebecca Zisser/Axios

WeWork on Wednesday filed to raise $1 billion in an initial public offering, although the ultimate offering amount is expected to be at least three times larger.

My thought bubble: There is a ton of investor skepticism over WeWork's business model, with expectations that it could receive Tesla-like treatment from public shorts. That's one reason why the company plans to increase its cash cushion by securing a $6 billion credit facility in conjunction with the IPO.

FinancialsArrowUpdated Aug 14, 2019

Startup employees spend three times more on Uber than Lyft

While Lyft is slowly growing its share of work-related rides taken by U.S. startup employees, rival Uber commands about 75% of the total, according to data from Brex, which supplies credit cards to startup companies.

Why it matters: Business riders are an important — and lucrative — category of customers for ride-hailing companies. Workers often need transportation when they travel, to get to and from airports, for business meetings, and can be less price conscious since convenience is a high priority.

Go deeperArrowAug 8, 2019