UBER declares its biggest quarterly loss

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UBER announced on Thursday a stupendous loss amounting to $5.2billion for its second quarter financial report from May to June, recording its worst quarterly loss.

The loss mostly came from stock-based compensation expenses (worth $3.9 billion) which were part of the company’s scheme for public appeal in the last three months.

The other source of UBER’s loss was its investments offering discounts to core ride-hailing, meal deliveries, and other marketing strategies to attract customers.

Despite the company’s effort to strike big investments, its profit gain is growing slowly. UBER’s public offerings make only small portions of their profit.

As a consequence of low-profit posting, its shares in the market dropped by 12%.

Prior to their quarterly loss announcement, UBER was reported to have axed hundreds of employees particularly in their marketing department, saying it was all part of the department restructuring.

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