Uber sales growth slows

Revenue growth was 38% in the third quarter, less than half of what it was six months earlier.

Uber’s sales growth is dramatically slowing even as the ride-hailing company is spending more to fuel global growth, particularly in its food-delivery business.

Revenue growth reached only 38% in the third quarter, not even half of what it was six months earlier, when the company was negotiating a $9.3-billion investment led by SoftBank Group Corp., according to figures released Wednesday by the San Francisco-based company.

That’s a troubling sign for a serially unprofitable business that hopes to get valued like a technology company in a planned initial public offering next year. The company lost $1.07 billion in the quarter that ended Sept. 30, an improvement over a year ago but a 20% wider loss than in the second quarter. Uber had $6.55 billion in cash on hand at the end of the quarter.

Highly valued companies typically grow quickly or generate big profits — and great ones do both. In the fourth quarter of 2005, Amazon.com Inc. had about the same revenue as Uber’s today — just under $3 billion, not adjusted for inflation. Yet, Amazon earned $199 million in profit and was worth about a fourth of Uber’s $76-billion valuation.

Uber released a limited set of financial information, a move the privately held company voluntarily does each quarter. The company also offered a glimpse into its food delivery business for the first time. A spokesman said Uber Eats generated $2.1 billion in gross bookings. That represents 17% of Uber’s $12.7 billion in gross bookings last quarter.

Chief Executive Dara Khosrowshahi has said that Uber is targeting a public offering in the second half of 2019.