Ridesharing company Uber Technologies revenue in the first quarter jumped 67% year-over-year to $2.5 billion and adjusted loss improved to $304 million from $597 million in the prior year period. Uber, which plans for an IPO in 2019, revealed a new tender offer that carries a higher valuation. The secondary shares will be priced at $40 per share bringing the company’s valuation around $62 billion compared to the $48 billion valuation when Softbank agreed to buy a large stake in Uber during December 2017.
Uber’s total bookings grew to $11.3 billion from $7.3 billion in the prior-year quarter. A group of three investment firms consisting Coatue Management, Altimeter Capital and TPG, have agreed to buy $400-500 million of Uber stock. Uber expects to continue to grow its business by taking several strategic measures. As part of those initiatives, Uber acquired e-bike startup JUMP last month. The company’s sale of Southeast operations to Grab is under regulatory review.
The San Francisco-based taxi company halted its autonomous car operations in Arizona on Wednesday following a fatal accident caused by its self-driving car. This decision resulted in laying off about 300 Uber employees in Arizona. However, Uber plans to continue the self-driving cars testing in Pittsburgh and San Francisco. When commenting on the Arizona accident, CEO Dara Khosrowshahi has said that Uber will start the testing again in few months.
Despite the continuous loss-making quarters, the app-based taxi firm continues to spend heavily on expanding its business. The company plans to invest more aggressively this year on its main business and other ancillary businesses like its food delivery business unit Uber Eats.
On its way to becoming a successful public firm in the future, in spite of having a lot of speed bumps like the self-driving car failures, long list of scandals, the exit of key executives, and competition, Uber gets fueled by expanding its businesses in various countries, and its investment in flying taxies, to name a few.