Uber Racked Up Losses in an Attempt to Ease Driver Shortage
- Adjusted loss was $509 million, wider than analysts expected
- Company forecasts third-quarter loss of less than $100 million
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Uber Technologies Inc. spent heavily to lure drivers back in the second quarter, resulting in a wider-than-predicted loss and raising fresh doubts about the reliability of its labor model long-term. Shares declined about 4% in extended trading.
The loss before interest, tax and other expenses was $509 million in the period that ended in June, Uber said in a statement Wednesday. That’s wider than the prior quarter but narrower than a year earlier. Analysts expected a loss of $325 million, according to an average of analysts’ estimates compiled by Bloomberg.