Saturday, 28 September 2019
Uber struggles to make a profit
Uber is a huge company and you probably thought it makes a profit all the time. But, Uber struggles to create a profit several months after went public in May. In August, Uber cut 400 jobs as it attempted to rein in excessive spending and losses. In August the company reported its largest-ever quarterly loss: $5 billion in three months.
Recently, Uber made some satefy updates to the app. Riders can now use a 4-digit PIN to verify they are entering the correct car. Uber says it is developing an “ultrasound wave” technology so in the future the app can automatically verify riders are in the right car without a PIN number. There also a new ability to text 911 in an emergency. Uber also announced an expansion of its Uber Rewards program. This program allows customers to redeem points when taking an Uber ride, ordering Uber Eats, or buying food with partner restaurants.
Uber stock went public at $45/share in May. Right now the Uber stock is $30.29. On Friday afternoon, Uber's value fell to $52.3 billion. This means Uber's market value fell below that of General Motors for the first time since the company's initial public offering earlier this year. General Motor's market value is at $53.1 billion on Friday afternoon. There are a lot of concerns about Uber's profitability and continuing losses. Theoretically, in the future Uber can create a profit every month.