Dara Khosrowshahi the CEO of Uber tells CNBC that 2019 has been the peak of the company’s loss and also compares the company’s rise to that of Amazon.
On Squawk Box Dara Khosrowshahi confirmed the above while speaking to CNBC’s Andrew Ross Sorkin in an interview on Friday that took place ahead of the Uber’s market debut.
Prior to three days, the rival of Uber i.e. Lyft’s executives on their first earning call also said that they were suffering from huge losses in 2019 which would lead several analysts to raise their price target on the stock. The profits of both the companies are of great concern for their respective analyst; amidst which the Uber Company is preparing for its IPO. Uber was expected to reach a market cap of $120 billion but it dropped to $75.46 billion which is based on its IPO price of $45/share on a non-diluted base.
Under its IPO filing, Uber confirmed an EBITDA loss of $1.85 billion in the year of 2018. But Uber takes this opportunity to compare them with Amazon which is also suffering a great loss at its IPO. Yet the Uber Company’s financials appear to be different from Amazon considering the IPO point of view. Initially, Uber debuted as a bigger company than Amazon but now it is slowing down in terms of its revenue growth. Even so, the CEO stands firm on his comparison and calls it to be fair at the wrong time.
According to him, the company is much bigger and mature as they had gone public while most other private companies tend to hold off. While giving the company’s growth status he said that the company’s audience is increasing 33% every year and transactions are going up by 36%. He calls this to be a great achievement of the company for being able to have 36% transactions increase on just $50 billion bases.
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