USA Today: Delivery Express posted its second-straight quarterly loss as the company struggled to retain customers.
The delivery company lost $1.4 billion in the quarter ended Feb. 28, a loss that was larger than its total revenue.
The company had previously reported a profit of $1 billion in its fiscal third quarter.
Deliveries for its customers declined by $1 million, or 12%, to $11.4 million.
The decline was worse than expected, according to a person familiar with the matter.
Deliverier Jeff Siegel said the losses came despite some growth in revenue.
It was the first time in the company’s history that it reported an annual loss, he said.
Siegel noted that deliveries to customers dropped 8% to $9.9 billion.
Delivery Express did not immediately respond to a request for comment.
“This is not a good quarter for the company,” said Doug McMillan, an analyst at Gartner Inc. “The losses are not surprising given the continued uncertainty surrounding its revenue.
But they are also an important reminder of the challenges that remain for this company as it seeks to grow and expand.”
Delivery Express has struggled with a sluggish economy, as well as a downturn in the stock market.
Deliverie has lost $7.5 billion in total revenue since 2008.
The business has also struggled to fill orders in recent years.
In its most recent quarter, deliveries to U.S. customers fell 6% to about $3.6 billion.
Deliveriers have struggled to find enough qualified drivers to deliver large packages to customers, a trend that has been exacerbated by a decline in the number of drivers.
The U.K. Postal Service has also suffered from a surge in demand for postal mail, with about 40% of its deliveries arriving by courier.
“Our challenge is to deliver to as many people as possible, and our customer base is shrinking,” Siegel told the Wall Street Journal.
“We will continue to build on our delivery team and our growth initiatives.”
The company has struggled to recruit and retain qualified drivers and it has been losing money to competitors.
The CEO of Delivery Express, Mike Mankin, has said he will seek to increase the number, not the number size, of his drivers.
Delivero has also been struggling to recruit qualified drivers, and has lost money to its competitors.
“I would never have guessed that we would be the No. 1 player in the marketplace,” Sauer said in an interview with CNBC.
“If you were a delivery driver and you had never been in the business, you would not have ever heard of Delivero.
We are the No 1 delivery company in the world.
We have a great team of drivers.”
Delivero is not the only delivery company that is struggling.
Uber is also struggling to attract drivers and the company recently filed for bankruptcy protection.