The economics of an Uber ride

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Uber's platform served 93 million monthly active users in the first quarter, up 86% from two years ago. The average user booked a ride, rode a scooter, or ordered food 16.4 times during the first quarter, compared to 15.6 times two years ago. That combination of growth in users and frequency caused total trips to soar to 1.55 billion in the 1Q19.

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While trips per user has gradually increased, in part driven by Uber Eats and Uber Pool, those offerings have also pressured revenue per trip, in addition to competition from Lyft ( LYFT ). That and high operating expenses led to an adjusted EBITDA loss of $0.55 per trip in the 4Q18, roughly in line with the prior year period, but well below than the rest of 2018 (loss of $0.27 per trip).

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More Renaissance commentary on Uber:
Uber prices $8 billion IPO at $45, toward the low end of the range
Uber needs to thread the needle on bookings, take rate, and expenses
Ride or die: Uber vs. Lyft
Cash guzzler 2: Uber is losing more money than any IPO ever

The article The economics of an Uber ride originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO) , Renaissance International ETF (symbol: IPOS) , or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: News Headlines , IPOs
Referenced Symbols: LYFT

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