Uber’s $5.4B loss tied to driver-appreciation payout
When Uber went public earlier this year it paid a select pool of drivers a nice chunk of change in what the company called a “driver appreciation award” well, that perk penalized the ride-sharing giant in the second quarter as the company posted a whopping $5.24 billion loss more than expected.
Shares of Uber slid 12 percent in extended trading Thursday.
Sales also fell short, coming in at $3.17 billion versus expectations of $3.36 billion.
Ironically, the big loss comes one day after a front-page story in the New York Times business section detailing how Uber is moving into mass public transportation, teaming up with cities and transit agencies in North America, the United Kingdom and Australia to provide tickets, transportation for people with disabilities and, in some cases, even provide a substitute for a city’s public transit system.
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Uber’s stock, overall, is flat since its May IPO though shares spiked 8 percent in regular trading on Thursday.