Ride-hailing giant Uber Technologies Inc (NYSE:UBER) has said it still expects to move into profit by the end of 2020 even though it lost more than one billion dollars in the final quarter of 2019.
Uber's quarterly revenue jumped 37% to US$4bn while the number of journeys climbed 28% but heavy spending on the Uber Eats delivery arm sent losses in the three months to December up to US$1.1bn from US$887mln.
The core ride-hailing app generated three-quarters of the revenue and would be profitable as a standalone business, said the NYSE-listed group which has been slashing costs in an effort to stem the losses.
Uber has also had its licence in London suspended after it revealed more than 14,000 trips were taken by drivers with fake identities and faces tougher employment regulations in California.
For 2019 overall, Uber lost US$8.5bn on revenues 26% higher at $14.1bn.
Shares rose 4% in after-hours trading in New York with investors reassured by the profitability forecast.