Uber’s operating income was less than a quarter what Wall Street expected.
The ride-hailing company reported that it had made $172 in the first three months of this year. This is far less than the analysts’ forecast of $600, but it was an improvement over last year when it lost $262 million.
The company’s legal, tax, and regulatory costs increased from $250 million to $527 million in the three-month period ending March.
Uber also said that its revenue growth has been “negatively affected” by the changes in its business model. The company’s revenue grew 15 percent to $10 billion from $8.8 in the previous year, and the value of all bookings through its platform grew 20 percent to $37.7 Billion, which was slightly below expectations.
Last night in New York, the shares fell 5.7 percent, or $4. The company was valued at $138.3 Billion.
Uber has faced litigation ever since it was founded, involving issues such as tax, competition, and the employment of its drivers.
Along the way, it has had to make changes in the way that it operates. It had to change its structure in 2022 to allow drivers to sign a contract with passengers directly, rather than through the UK High Court.
London taxi drivers are fighting a long-running battle against Uber
In March, 8,000 Australian drivers received $178 million as compensation for the loss of income they suffered when Uber “aggressively moved” into Australia.
Other lawsuits are expected to be filed, including by 11,000 London black taxi drivers, who last week sued, alleging the US company intentionally misled Transport for London regarding how the app operated from 2012-2018.
RGL Management, which is handling the funding in the case, has stated that cabbies may receive up to PS25,000 per person. Uber’s London license is set to expire by the end of September.
Uber denies the claims and states that they are untrue.
The UK Supreme Court ruled in 2021 that Uber drivers are employees and not self-employed. This means they are entitled to minimum wage, holiday pay, etc.
Uber announced its first annual operating profit in February. This marked a major turnaround for the company. It warned that there was a risk it wouldn’t make a profit when it announced its 2019 float.
Ubercab Inc. was founded by Travis Kalanick in 2009. The company employs approximately 32,000 people in 70 different countries.
Dara Khosrowshahi is the former chief executive of Expedia and has expanded her company’s offerings to include a variety of transport options including trains on some markets, such as Britain.
Khosrowshahi commented on the results: “More seven million people choose to earn flexible on Uber each month. Driver earnings of $16.6 Billion continue to grow faster than Uber’s topline.”
The company reported that freight continued to be a drag on business, with revenue falling by 8 percent on an annual basis. This was due to a “challenging environment” in the industry.
Overall, it continues to grow. It has forecast gross bookings between $38,75 billion and $40.25 billion for the second quarter of this year. This is an increase of up to 23% from the previous year.