Uber expects gains at latter part of 2020 but braces for year of decline

Uber Technologies Inc (UBER. N) adjusted its target with an aim of achieving its profitability by the end of the year, but the ride hailing firm anticipates a major decline estimating up to $1 billion or more this 2020.

Uber shares advanced greatly up to 5% in after-hours session. Such activity followed after Chief Executive Officer Dara Khosrowshahi disclosed the company’s plan of cost cutting as a measure to gain more repeat-customer opportunities and to boost the utilization of premium ride services.

Khosrowshahi added that Uber would maximize and implement measures to cap loss at the company’s declining food delivery service, Uber Eats. The scheme is to transform the service as the top player in the global industry, advancing the overall segment’s earnings of the company since the service drags the company’s overall performance.

The CEO also revealed the new target profit on a conference call with associates and investors following disappointing results of 2019’s fourth quarter. Figures disclosed that the company met sharp setbacks at the latter part of 2019 but had its customer base greatly advanced.