Both Uber and Lyft didn't meet analysts' expectations — one fell short, the other exceeded.
Uber Technologies Inc. posted disappointing quarterly results Thursday, sparking a sell-off in after-hours trading. Its ride-hailing rival Lyft Inc. beat analysts’ expectations the day before, but Uber’s second-quarter adjusted sales fell short of estimates and the company posted a net loss of $5.24 billion.
In its filing, Uber also acknowledged the creation of a $6.1 billion Dutch tax deduction that will help the company reduce a chunk of its global tax bill for years to come. The deduction, which came through an increase in the value of intellectual property that Uber transferred between its offshore subsidiaries, will be a cushion should the company ever turn a profit.
Uber has been public for less than three months, but investors are already wondering how long it can keep growing. The San Francisco-based company said last week that it’s cutting about 400 employees in marketing, and Khosrowshahi suggested the business had a broader problem with bloat. Uber isn’t the only U.S. company that has moved operating units around the world in response to Organization for Economic Cooperation and Development rules. The OECD requires multinational companies to justify the business purpose of their offshore operations. Low-tax countries like Singapore, Ireland and the Netherlands are becoming more desirable than no-tax Caribbean havens such as Bermuda.
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