Uber will report its fourth-quarter 2019 earnings on Thursday after the closing bell. Wall Street expects the ride-hailing giant to remain deeply unprofitable while slowly shoring up its bottom line. The industry is quickly becoming more “rational,” according to analysts, as Uber and Lyft wean customers off coupons and discounts they used to grow over the past decade.Click here for more BI Prime stories.There’s one topic executives at Uber — and even its smaller competitor Lyft — can’t seem to talk enough about.
Both companies are trying to wean riders off the discounts and coupons that flooded the market as the ride-hailing services fought for market share ahead of their public debuts in 2019. That’s a long way to describe what insiders are calling rationalization.And in Uber’s fourth-quarter 2019 earnings report on Thursday afternoon, that process of raising prices to help shore up a deeply red bottom line is likely to be at the top of anxious investors’ minds.Wall Street analysts polled by Bloomberg said they expected the company to lose an adjusted $0.60 per share on revenues of $3.7 billion. Those numbers would represent a nearly 10% improvement from the third quarter on both measures.After the mixed third-quarter expectations, CEO Dara Khosrowshahi assured analysts that rationalization was coming.
“The rides rationalization has happened much faster I think than anyone expected, and we have a ton under our own control as far as our own business model, how we use technology and automation to drive per-unit margin,” he said. In total, the R-word came up 17 times on the call.But it takes 2 to tangoLyft, which competes with Uber in the US in the ride-hailing area only (not Eats, flying cars, or anything else), said thi
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