Uber must soon face up to task of picking up some serious money

Its IPO caught Wall Street in generous mood but investors will want more than scooter schemes

Uber was smart to get itself listed on the New York stock exchange before the WeWork fiasco. There’s now a much-needed mood of scepticism on Wall Street towards cash-burning companies whose horizon for profitability stretches into the middle distance. Uber might find it harder today to raise $8bn (£6.2bn) at a whizzy valuation.

As it is, Uber’s shares have reversed by a third since the initial public offering in May and every financial update offers evidence as to why. In the third quarter of this year, the ride-hailing firm improved revenues by 30% year on year to $3.8bn. But losses, even on an adjusted basis, grew by a similar ratio to $585m. All those new ventures, from Uber Eats to electric scooters, are a drag.

Continue reading…Its IPO caught Wall Street in generous mood but investors will want more than scooter schemesUber was smart to get itself listed on the New York stock exchange before the WeWork fiasco. There’s now a much-needed mood of scepticism on Wall Street towards cash-burning companies whose horizon for profitability stretches into the middle distance. Uber might find it harder today to raise $8bn (£6.2bn) at a whizzy valuation.As it is, Uber’s shares have reversed by a third since the initial public offering in May and every financial update offers evidence as to why. In the third quarter of this year, the ride-hailing firm improved revenues by 30% year on year to $3.8bn. But losses, even on an adjusted basis, grew by a similar ratio to $585m. All those new ventures, from Uber Eats to electric scooters, are a drag. Continue reading…

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