Uber is SoftBank’s No. 1 bet in the world, CEO Khosrowshahi says

Uber CEO Dara Khosrowshahi said SoftBank’s head “doesn’t throw good money after bad” and that the company and its financial backer’s interests …

Uber CEO Dara Khosrowshahi said SoftBank‘s head “doesn’t throw good money after bad” and that the company and its financial backer’s interests are aligned as the Japanese conglomerate rolls out another megafund.

Khosrowshahi, appearing on CNBC’s “Squawk on the Street, ” said Uber and SoftBank CEO Masayoshi Son are on the same page as the SoftBank’s Vision Fund 2 prepares to invest in companies that could become competitors with the ride-hailing giant.

“I think that Masa is a businessman. He doesn’t throw good money after bad. When he puts in money into companies, it’s because he believes in them and he thinks they’re going to be category leaders. We are their single largest investment on a global basis, so I think our interests and Masa’s interests are very much aligned,” Khosrowshahi told CNBC’s David Faber and Jim Cramer.

SoftBank launched its second megafund last month, contributing $38 billion of its own money. The fund is expected to total $108 billion and will invest in technology companies working with artificial intelligence.

This new round of investments could increase competition for Uber, which is trying to expand offerings such as food delivery service UberEats as it works toward profitability.

“The eats market continues to be very competitive,” Khosrowshahi said. “There’s a lot of capital coming into the category, because it’s growing, and I think eats is going to be a battle this year and next year.”

A new round of investments in startups could expand the total market for Uber’s services and be beneficial for the company, even if it creates competition, Khosrowshahi said.

“They know everybody, they understand the markets, and I’m very, very happy to have them as an investor, and I consider Softbank a very good actor in this marketplace. They’re going to put money against the markets, but that’s going to expand the markets, and we have been one of the cheap beneficiaries of that,” Khosrowshahi said.

Uber missed analyst expectations on the top and bottom lines in its first quarterly report since its initial public offering, sending its shares tumbling. The transportation company lost $5.2 billion in the quarter, due in part to stock-based compensation.

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Uber CEO reveals they considered buying food delivery app Caviar before rival DoorDash did

Uber CEO Dara Khosrowshahi told CNBC on Friday that the ride-hailing, freight, and delivery giant considered a deal with on-demand food delivery …

Uber CEO Dara Khosrowshahi told CNBC on Friday that the ride-hailing, freight and delivery giant considered a deal with on-demand food delivery service Caviar but decided to pass.

“We took a look at Caviar. It’s a great brand,” Khosrowshahi said in a “Squawk on the Street ” interview, as Uber shares were sinking after disappointing second-quarter results. “It wasn’t the right deal for us.”

Khosrowshahi said Uber’s food delivery service, Uber Eats, will focus on organic growth rather than acquisitions.

On Aug 1, Square announced an agreement to sell Caviar to Uber Eats’ formidable rival DoorDash for $410 million. Square had bought Caviar for just over $44 million in 2014. The Caviar service specializes in premium restaurants.

While declining to comment further on Caviar, Khosrowshahi did say that he sees food delivery as a real battle this year and next. “The Eats market continues to be very competitive.”

Khosrowshahi said that if Uber were to seek any acquisitions, he’s not worried. “We’re Uber, everyone wants to talk to us.”

After the Wall Street close Thursday, Uber posted a much wider-than-expected second-quarter loss of $4.72 per share. Revenue of $3.17 billion was also missed analyst estimates.

Uber’s core ride-hailing business saw better-than-expected gross bookings for the quarter, while the newer Uber Eats unit’s gross bookings fell short of forecasts.

“So with rides, I say the competitive environment is stable and getting better,” Khosrowshahi said during Friday’s CNBC interview. “We see a lot of competition with Eats,” he reiterated.

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Uber CEO has no regrets about poor IPO, says company still ‘not getting through’ to investors

Uber CEO Dara Khosrowshahi has no regrets about taking the company public despite the stock’s poor debut and continued struggles. He said …

Uber CEO Dara Khosrowshahi has no regrets about taking the company public despite the stock’s poor debut and continued struggles. He said investors are misunderstanding the company as the shares plunged following a massive loss.

“I think we’ve got to do a better job in terms of telling our story to the markets. I think the company is executing very very well, and somehow it’s not getting through the noise,” Khosrowshahi told CNBC’s David Faber and Jim Cramer on Squawk on the Street on Friday.

Asked if he has any regrets about the Uber’s initial public offering, the CEO said “it was a great day as far as bringing in, getting the company public, getting us funded to that path to profitability as well.”

“At some points you just put your head down and you execute and the market short-term, while you can’t control the short-term, long-term the market will take care of itself,” he added.

Shares of Uber tanked nearly 10% Friday after the ride-hailing giant reported disappointing second-quarter earnings, including a massive $5.2 billion loss in the three-month period. The stock has been trading below its IPO price of $45 since early July.

Khosrowshahi said the company’s staggering loss in the second quarter is a “once-in-a-lifetime” hit as he tries to steer it toward profitability. He added that Uber is targeting 30% revenue growth in the back-half of the year.

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Uber CEO: Massive losses from IPO were a once-in-a-lifetime hit

Uber CEO Dara Khosrowshahi called the company’s staggering $5.2 billion loss in the second quarter a “once-in-a-lifetime” hit as he tries to steer it …

“The founder mentality, that edge, that fire, is absolutely something we want to keep going at the company,” Khosrowshahi said. “It’s a big part of what made the company successful and I absolutely think it will play a big part in making the company successful moving forward.”

For the quarter, Uber posted a loss of $4.72 per share, which was larger than the loss of $3.12 per share estimated by analysts. Revenue came in light at $3.17 billion compared to consensus estimates of $3.36 billion.

The company reported a staggering $5.2 billion loss during the quarter, which was largely owed to stock-based compensation. While stock-related compensation costs are common among Silicon Valley companies, Uber’s losses were bigger than total 2018 losses for all but three S&P 500 companies.

Khosrowshahi continues to face increasing pressure from investors that he can get Uber on track to profitability. That’s likely to be a tough task, given that Uber has long subsidized its rides. He also addressed the stock’s lackluster performance since Uber’s IPO.

“We’ve got to do a better job as far as telling our story to the markets,” Khosrowshahi said. “Long term, the market will take care of itself, and I think that’s what we’re focused on right now.”

He said the company was recently forced to increase prices in New York City due to stricter regulations from the city’s Taxi and Limousine Commission. As a result, Uber has had to “restrict the number of drivers” that can enter the marketplace.

“I think it’s a tragedy. I think that when you put into law laws that are not market driven, you wind up helping special interests and hurting other people,” Khosrowshahi said. “The neighborhoods that need transit the most… our business is suffering there and that’s just not fair.”

In an interview with CNBC’s Deirdre Bosa on Thursday, Khosrowshahi said 2019 will be the company’s “peak investment year” and that losses should come down in 2020 and 2021. He added that he’s certain “the business will eventually be a break even and profitable business.”

Excluding stock-based compensation, Uber’s losses were approximately $1.3 billion, or about 30% worse than the prior quarter.

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Uber Shares Skid After $5.2 Billion Q2 Loss, Revenue Miss; Lyft Pulled Lower

Uber Technologies (UBER) shares tumbled in pre-market trading Friday after the world’s biggest ride-hailing group posted a wider-than-expected …

Uber Technologies (UBER) shares tumbled Friday after the world’s biggest ride-hailing group posted a wider-than-expected second quarter loss of $5.24 billion and cautioned that more red ink would follow in the months ahead.

Uber said its loss for the three months ending in June, the second quarterly report as a public company, came in at $4.72 per share, well ahead of the $2.70 tally forecasts by analysts that cover the group. Overall revenues, Uber said, rose 14% from last year to $3.17 billion, but again fell shy of the Street consensus forecast of $3.32 billion.

Looking into 2019, Uber said increased spending and expansion costs will likely mean the group posts a full-year loss of between $3 billion and $3.2 billion, but nonetheless sees gross bookings for the ride-sharing platform, which topped 100 million monthly active users in the second quarter, rising to an estimated range of between $65 billion and $67 billion.

“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 to improve effectiveness and from good old-fashioned focus on the bottom line,” CEO Dara Khosrowshahi told investors on a conference call late Thursday. “I think you know that the balance between the top and the bottom line is more of an art rather than a science. So I if I told you that we had kind of the scientific formulae that we’re solving for here, we’d be lying to you,”.

“We think that as we look at our marketing spend, our incentive spend, how we can leverage the business going forward, we think that there’s the opportunity to scale our expenses or be more efficient with our incentive spend or be more efficient with our marketing spend really doubled down on less, smaller kind of projects and doubling down on the channels that are really working for us,” he added.

Uber shares were marked 9.63% lower at the opening bell Friday to change hands at $38.83 each, a move that leaves the stock some 13.7% south of its May 10 IPO price of $45 per share.

Uber’s ride-hailing revenues grew just 2% from last year to $2.3 billion, the company said, although the average revenue per rider rose 20%. while Uber Eats, its food-deliver business, saw revenues rise 72% to $595 million.

The group’s overall results, however, offer a sharp contrast to its main rival, Lyft Inc. LYFT, which said yesterday that its loss for the three months ending in June was tabbed at 68 cents per share, notably lower than the $8.37 per share loss it booked last year and 32 cents inside the Street consensus forecast.

Group revenues, as well, impressed analysts’, rising 72% from the same period last year to a forecast-beating $867.3 million. Lyft said revenue per rider rose 22% from last year to $39.77, while the number of overall customers surged 41% to nearly 22 million in its first quarterly report as a public company.

Lyft shares were marked 1.61% lower in pre-market trading Friday, after posting a 3% gain Thursday, to indicate an opening bell price of $61.10 each.

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