Uber said it had 93 million Monthly Active Platform Consumers by the end of the first quarter this year, up 33 percent from 70 million riders over the corresponding period of 2018. Uber's food ordering business earns lower margins than the core ride-hailing business.
Wall Street analysts said they were not surprised by the billion-dollar loss because the company had shown disappointing numbers since it debuted on the New York Stock Exchange this month.
That's solid growth, but there's some disparity over where it came from.
In an earnings call, some analysts raised questions about whether Uber Eats could sustain its growth in the face of heavy competition, and whether Uber's price wars would shift from ride-hailing to food delivery.
CEO Dara Khosrowshahi says customer engagement across Uber's platform was higher than ever with an average of 17 million trips per day.
Uber's stock closed down a quarter of a percent at $39.80. Uber Eats has emerged as the third major player in the market, where companies take a commission on the total value of orders, called "take rate". Uber Eats, its meal delivery service, more than doubled from a year earlier, while Freight jumped more than 200%.
Uber was the biggest of a group of Silicon Valley startups that have gone public this year against the backdrop of a global stock market sell-off sparked by renewed trade tensions between the United States and China.
Uber's arc mirrors that of its rival Lyft, which went public in March. "In particular, in India, increased incentives to consumers, drivers and restaurants drove almost half of the year-over-year decline in Uber Eats' take rate to 8% from 12% a year ago", said chief financial officer Nelson Chai during a call with analysts.
Electric bike and scooter rentals add to the options to build out "a whole transportation ecosystem on one app", along with a loyalty building program that will keep people coming back to use the services.
Moreover, Uber is planning to involve itself more in emerging markets. And despite a massive overhaul of leadership at the Uber, investors still consider the company a risky bet.
Shared solutions, like Uber, is redefining shopping and eating experience, to name a few.
Relatively, the conventional eat-out experience has restructured itself from a pleasant and relaxing experience to a day of facing heavy traffic and stress, especially in populated and busy cities globally.
The company announced other developments for the quarter.