Uber’s second quarter losses another red flag for the ‘Amaz…

Uber’s second quarter losses another red flag for the ‘Amaz…


Last week, Uber reported its results for the second quarter of 2019 — and they were not great. The company lost $5.2 billion over just four months, which sent its stock tumbling days later to a new low. Executives say $3.9 billion of the loss is stock-based compensation from an initial public offering in May — which seems excessive when it was seen as a disappointment — but that still leaves a $1.3 billion hole that’s much larger than the $878 million the company lost in the same quarter last year.

The loss was larger than analyst expectations, while revenues fell short and sales growth declined to the slowest rate in the company’s history. That’s particularly bad news because these losses are supposed to be about gaining the dominance that will be necessary to pay investors back at some point.

Uber has a long history of misleading the public about its services, suggesting it can’t be trusted with the power that would come with such a position.

Monopoly, or at the least oligopoly, is central to the company’s strategy, but should residents really want Uber to play a dominant role in the future of transportation? Uber has a long history of misleading the public about its services, suggesting it can’t be trusted with the power that would come with such a position.

After years of claiming it was a “last-mile” service that complemented public transit, Uber admitted in its IPO filing that it sees other forms of transit as competition and intends to replace them with its own services. Similarly, researchers have warned that ride-hailing services increase congestion and emissions and worsen transit service in cities — and Uber and Lyft now concede that’s true. And a North Carolina State University study found scooter sharing, which Uber (through its Jump brand) and Lyft have embraced in the past year, isn’t as green as they’ve been saying. (Essentially, scooters only produce fewer emissions if they replace car trips, which is only the case for a third of scooter rides.)

Moving & Transportation Services Jonathan Cartu

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