Uber lost more than $5 billion in three months

Traffic Jam Uber Seen Posting Losses In Latest Quarter As Stock Still Stuck

Uber's shares fell 11 per cent in after-hours trading.

"We're focused on improving profitability in this market and many other markets around the world and based on what we read Lyft seems to be focused in a similar way", Khosrowshahi said on the call.

The quarterly loss was the largest Uber has ever recorded as results were affected by a $3.9 billion one-time stock-based compensation item stemming from the company's May IPO, as well as a driver appreciation rewards totaling almost $300 million.

Total revenue was up 14 percent year-over-year at $3.17 billion, well short of the consensus estimate of $3.36 billion.

Stock related compensation expenses took a huge bite out of its revenue, according to Uber, which operates ride hailing in global markets and has several related transportation services.

Uber shares hit a rough patch after the ride-hailing giant reported widening losses as it moves to diversify.

Uber continued to spend heavily on sales and marketing, which includes costly promotions created to attract riders and drivers.

Uber and Lyft have historically relied on subsidies to attract riders, and have been spending heavily to expand into areas such as self-driving technology and food delivery.

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The company is locked in competition with its rival Lyft and is spending on a range of newer businesses including food delivery, Uber Eats, and freight.

Uber has consistently said 2019 was expected to be an investment year.

Lyft on Wednesday said pricing had become "more rational", meaning the company should spend less on promotions and incentives to win market share. It raised its revenue outlook on Wednesday.

"While we will continue to invest aggressively in growth, we also want it to be healthy growth, and this quarter we made good progress in that direction", said Uber Chief Financial Officer Nelson Chai, in a statement accompanying the earnings.

For the fourth quarter of 2019, Lyft expects its contribution margin - which strips out many costs from revenue, including stock-based compensation - to decline 1 point to 49%, given seasonal trends, especially with bikes and scooters. It also topped Wall Street targets of a $996 million loss.

Uber, which admitted ahead of its Wall Street listing that it may never make a profit, is trying to convince investors that growth will come not only from its ride services, but also from other logistics and food delivery services.

The San Francisco company said revenue grew 14 percent to $3.2 billion but it lost $5.2 billion as compared to losing $848 million in the same period a year ago.

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