The loses were mainly investments in other companies due to a fall in businesses.
Uber Loses Whooping $5.2 Billion in Asia. Uber has lost a huge amount that totals up to $5.2 billion or £4.7 billion. This amount was mainly investments in other companies. The firm made it clear in its statement that the loss in the investment value is due to a fall in businesses including Asian giants – South East Asia’s Grab and China’s Didi. Share of Didi and Grab have been in turmoil in the New York listing since last year.
The management has stated that the company is still recovering from the impact of COVID-19.
Dara Khosrowshahi, the Chief Executive of Uber stated “Our results demonstrate just how much progress we’ve made navigating out of the pandemic and how the power of our platform is differentiating our business performance”
The company also stated that the total number of taken trips has risen 18% during the three months till the end of March, comparing these figures with the same time last year. This has made the revenues jump to 136%.
Calculating the net results shows that Uber’s first-quarter loss for the year has increased to a whopping figure of $5.9billion from $108million a year ago. The loss is not just in property but is a drop in the value of stakes that the company had in other businesses that were primarily in the Chinese ride-hailing business, Didi. According to the CFO Nelson Chai, fortunately, the company has enough liquid assets to hold these stocks till a better time to sell them. The shares closed a 4.65% lower on yesterday’s trading in the New York listing.
Uber faced tough competition in China in 2016 and had to sell its business to the Didi in exchange for an 18% stake in the firm. Since its $4.4bn debuts on the NYSE, Didi’s valuation in the US market fell by more than 80% since last summer. China’s internet regulators issued orders to the online stores, prohibiting them to offer Didi’s app due to its illegal acquisition of users’ data.
In December last year, the company announced its plans for moving its listings to Hong Kong from the NYSE. Didi also revealed this week that the company has faced an investigation by the US stock regulators regarding its IPO.
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In 2018, Uber sold a chunk of its business to the South East Asian-based Grab for a 27.5% stake when both the firms were still privately owned. Grab had a shaky start on the Nasdaq platform in December last year. The stock valuation of the company fell almost 75% since the company’s IPO.
Uber also acquired stakes in Zomato, Indian based food delivery service, in exchange for its Uber Eats. The market value of Zomato’s shares has reduced to half since its debut in July.