Shares of Uber Technologies Inc. plummeted in after-hours trading Monday and into Tuesday after the ridesharing company reported that it lost a whopping $1.16 billion in the third quarter, exceeding losses from the same quarter last year by 18 percent.
For the quarter, Uber reported a loss per share and revenue that beat analyst expectations, but the company’s worsening prospects for eventual profitability sent the stock to a near-record low since Uber went public in May.
Uber CEO Dara Khosrowshahi said in an interview with CNBC that he is looking to right the ship in two years’ time.
“We know there is the expectation of profitability, and we expect to deliver for 2021,” Khosrowshahi told the cable network.
Uber shares are facing more downward pressure on multiple fronts, including the end of the employee lock-up period next week, which will allow Uber employees to sell their shares.
The company is also facing a significant legal battle in California over the recent passage of a law, formerly known as Assembly Bill 5 (AB5), that would entitle gig economy workers to perks, including minimum wage and overtime.
The law represents an existential threat to Uber’s business model, which relies on drivers being classified as contract workers.
Uber, Lyft and other ridesharing and food delivery companies have promised to spend $90 million to combat the law.
Earlier this year, Uber laid of 400 employees at its California offices while seeking to import hundreds of foreign workers through the H-1B visa program.
Uber’s Khosrowshahi said in an analyst call Monday that he is realigning the company’s priorities.
“This company grew very fast… And so there wasn’t a lot of focus on how do you make sure that you work efficiently,” he said.
“It was absolutely the right set of priorities for the time. Our priorities are changing.”
Shares of Uber were down nearly 8 percent in Tuesday morning trading.