Geoffrey Smith 

Uber (NYSE:) shares fell slightly in premarket on Monday after Uber announced massive writedowns in Asia and selfdriving investments. The ride-hailing firm suffered a loss of $5.9 million in its first quarter.

Intangible impairments of $5.6 billion were made by the company in relation to investments in Didi Global in China, Grab in Southeast Asia, and Aurora in 2020. 

Additionally, it incurred $359 millions in stock-based compensatory costs. 

The group, however, was positive about the progress in its core mobility business and in food delivery, which is quite different from rivals. Lyft (NASDAQ:) whose stock plunged 27% on Tuesday in after-hours trades after the company warned that drivers would face higher transportation costs. Uber stock was initially down 4% as a result of sympathy. However, it had almost recovered when it released its earnings.

Uber chief financial officer Nelson Chai said in a statement accompanying the quarterly earnings that, “With free cash flow approaching breakeven in Q1, we now expect to generate meaningful positive free cash flows for full-year 2022.”

The company’s tighter lockdowns in core markets last year led to revenue more than doubling to $6.9 million. The gross bookings of taxis rose by 58% compared to a year ago, and food delivery bookings increased by 12%.