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Uber lost $1.3 billion in first half of year
Posted On Aug 25 2016
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Uber is not a public company, and as such, does not have to disclose its financial statements, but Bloomberg’s sources report the head of finance gave the news to stockholders, and pinned the majority of the losses to driver subsidies, according to the article. The second-quarter losses were said to include $100 million from Uber’s operations in the United States.
Large tech companies have been known to take big losses as they grow.
So, maybe the up-and-coming, but still very much in development autonomous driving technology can save Uber before it loses too much.
Bloomberg notes that Amazon’s biggest annual loss was $1.4 billion in 2000, a figure Uber surpassed previous year and is on pace to exceed again in 2016. It has $8 billion on-hand and another $1 billion coming in. The company’s losses then mounted in the following quarter.
The company’s net revenue increased to about $1.1 billion in the second quarter from $960 million in the first quarter, while bookings rose to more than $5 billion from more than $3.8 billion in the prior quarter, Bloomberg said. In the entirety of the company’s history, they’ve lost a total of at least $4 billion. The company’s losses will likely fall. Their market share was sold to Didi, a Beijing-based ride-hailing program. Bloomberg also says that the company is doing its best to maintain its lead in the ridesharing space in the U.S. – to that end, it has engaged in a price war with Lyft which is contributing to its losses. Uber told investors on Friday’s call that it’s willing to spend to maintain its market share in the U.S. The company told investors that it believes Uber has between 84 percent and 87 percent of the market in the U.S., according to a person familiar with the matter. It will take the market from taxi and other vehicle service.
Uber didn’t immediately respond to a request for comment on the reported losses. In July, Uber delivered 62 million rides to Lyft’s 13.9 million. Uber also has access to a $2 billion credit line and a $1.2 billion loan.
