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How Uber Lost $1.3bn in Half a Year

Olivia Long - August 26, 2016 - 08:32 AM
How Uber Lost $1.3bn in Half a Year
Uber is said to have mounted a total of at least $1.27 billion in losses in the first half of 2016 alone.

(CCM) — On Friday, Uber's Head of Finance, Gautam Gupta, shared with the company's shareholders that the ride-hailing giant had suffered yet another loss of profit in the year's second quarter. This brings its total losses to an estimated $1.27 billion — over the course of six short months. The ballpark figure comes from reports by Bloomberg and takes into account Uber's reported first-quarter losses of roughly $520 million before interest, taxes, depreciation, and amortization and second-quarter losses, which are said to exceed $750 million.

Throughout its seven-year history, the company has consistently lost revenue, bleeding out an unprecedented $4 billion in all since its inception. Gupta points the finger at driver subsidies as the reason for most of Uber's global devastation, according to sources close to the matter. Still, it is regarded as an innovator in the mobile ride-hailing industry. Proving that that title is perhaps well-deserved, the company is reporting a growth in booking revenue from more than $3.8 billion to over $5 billion between the first and second quarters. Net revenue also grew — about 18%, from roughly $960 million in the first quarter to just around $1.1 billion in the second. Uber has yet to comment publicly on the matter.

Image: © GongTo - Shutterstock.com
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