Uber Technologies Inc. on Wednesday released financials that show revenue growth slowed and the human cloud firm’s loss exceeded $1 billion in the third quarter. The ride-sharing company also announced a new rewards program following a similar move by its competitor, Lyft.
Revenue growth of 38% in the third quarter was almost half of what the growth rate was six months earlier, Bloomberg and other media outlets reported. The San Francisco-based company lost $1.07 billion in the quarter ended Sept. 30, an improvement from a year ago but 20% larger than the second quarter.
Gross bookings — the total amount Uber takes in without subtracting driver fees and other costs — increased 6% quarter over quarter and 34% year over year at $12.7 billion.
TechCrunch reported Uber’s net losses increased 32% quarter over quarter to $939 million on a pro forma basis, but Uber expected these losses as it continues to invest in future growth areas.
“As we look ahead to an IPO and beyond, we are investing in future growth across our platform, including in food, freight, electric bikes and scooters, and high-potential markets in India and the Middle East where we continue to solidify our leadership position,” Uber CFO Nelson Chai wrote in a statement.
Uber also provided insight into it food delivery business for the first time.
Uber Eats generated $2.1 billion in gross bookings, which represents 17% of Uber’s $12.7 billion in gross bookings last quarter and is growing more than 150% year over year. Uber recently told TechCrunch it intends to expand Eats to cover 70% of the US population by the end of this year.
Uber’s reward program, announced separately yesterday, allows participants to earn points based on the services they use. Among other incentives, rewards include $5 added to their Uber Cash balance for every 500 points earned, which can be spent on both rides and Uber Eats. Uber Rewards will initially launch in nine cities, and expand nationwide in the next few months.
The move follows the launch of Lyft’s reward program on Nov. 12. Riders in its program also earn points for each dollar spent for rewards such as upgrades to Lyft Lux or savings on future rides.