Both Uber and Lyft continued to show significant revenue
growth but large losses in their second-quarter earnings.
Uber reported that gross bookings in the quarter were up 31
percent year over year to $15.8 billion and that the number of trips booked
through the platform grew 35 percent to 1.7 billion. Revenue rose 14 percent to
$3.2 billion. Uber noted that Germany, where Uber is operating in five large
cities, is one of its fastest-growing markets and that Buenos Aires has grown
to be its fifth-largest city in the world based on number of trips.
Uber's net loss for the quarter was $5.2 billion, compared
with an $878 million net loss in the second quarter of 2018. R&D costs were
more than eight times higher in the quarter—$3.1 billion compared with $365
million in the second quarter of 2018—and the quarter also included a $298
million driver appreciation award and $3.9 billion in stock-based compensation
expenses, both related to its IPO.
CEO Dara Khosrowshahi in an earnings call said the loss was
"a big improvement versus Q1" and was better than Uber's internal
forecast. "While you often have to make trade-offs in life, we believe
that we can continue to invest aggressively and grow while driving efficiencies
from scale by building great tech that improves effectiveness and from good
old-fashioned focus on the bottom line."
At Lyft, second-quarter revenue grew 72 percent year over
year to $867.3 million. The number of active riders rose 41 percent to 21.8
million, and revenue per active rider grew 22 percent.
Lyft's net loss for the quarter was $644.2 million, compared
with a loss of $178.9 million in the second quarter of 2018. The $644.2 million
includes $296.6 million in stock-based compensation and $141.1 million related
to changes in liability insurance requirements. Lyft also improved its outlook
for the year, cutting $300 million from its anticipated loss for 2019 amid
rising revenue expectations.
The second quarter "was an outstanding quarter that
significantly surpassed our guidance on both the top and bottom line,"
Lyft CFO Brian Roberts said in an earnings call. "Our results benefited
from strong market conditions, organic growth in riders and the continued
expansion of Lyft's transportation platform."
Related:
Lyft Q1 earnings