Uber Loses at Least $1.2 Billion in First Half of 2016

[Cody Webster]

RIP Ix. Find a real job

The ride-hailing giant Uber Technologies Inc. is not a public company, but every three months, dozens of shareholders get on a conference call to hear the latest details on its business performance from its head of finance, Gautam Gupta.

On Friday, Gupta told investors that Uber's losses mounted in the second quarter. Even in the U.S., where Uber had turned a profit during its first quarter, the company was once again losing money.

In the first quarter of this year, Uber lost about $520 million before interest, taxes, depreciation and amortization, according to people familiar with the matter. In the second quarter the losses significantly exceeded $750 million, including a roughly $100 million shortfall in the U.S., those people said. That means Uber's losses in the first half of 2016 totaled at least $1.27 billion.

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[Finnish your Czech]

Uber’s backers range from venture capital firms like Benchmark Capital to the investment bank Goldman Sachs. Altogether, Uber has raised more than $16-billion in cash and debt. Its latest valuation is a whopping $69-billion. The company has effectively redistributed at least $1-billion to the Chinese working class in the form of heavy subsidies to drivers there. “Uber and Didi Chuxing are investing billions of dollars in China and both companies have yet to turn a profit there,” Uber Chief Executive Officer Travis Kalanick wrote in a letter announcing the company’s departure from China.

that's a lot of money

 

[Satan]

Losses are fine for Uber right now. It's probably grown a ton.

 

[XX]

Amazon and Tesla have or have at points lost tons of money. It means nothing if people still have faith in the product and the business model. If they have growth, it's not an issue.

 

[aleshemsky83]

Thats surprising considering a lot of their bans, for lack of a better word, in large cities have been lifted and theyre expanding more and more.

 

[Satan]

Thats surprising considering a lot of their bans, for lack of a better word, in large cities have been lifted and theyre expanding more and more.

Why is it surprising? Their prices are ultra cheap to drive out the competition. Once the competition is out of their way and theyre satisfied with how the company has grown they can then begin to increase prices and start turning profits.

 

[HanSolo]

Sometimes you lose some sometimes you grow by a lot.

 

[yubbers]

Lirl

Lost a billion but made 100.

#allrelative

 

[aleshemsky83]

Why is it surprising? Their prices are ultra cheap to drive out the competition. Once the competition is out of their way and theyre satisfied with how the company has grown they can then begin to increase prices and start turning profits.

ahhh, that makes more sense.

 

[irunthepeg]

Losses are fine for Uber right now. It's probably grown a ton.

Why is it surprising? Their prices are ultra cheap to drive out the competition. Once the competition is out of their way and theyre satisfied with how the company has grown they can then begin to increase prices and start turning profits.

 

[x Tame Impala]

He's not wrong. In my city they're doing that to phase out cabs. It's working too. I can use Uber Pool and it's a $3.12 ride to get me from my neighborhood to Downtown Chicago 4.2 miles away. It's unbeatable.

It really screws the drivers though.

 

[Chris Hagen*]

HFBoards cluelessly discussing the finances of a tech company during a major growth period. Absolutely hilarious.

 

[Satan]

It's the truth. Business 101

 

[irunthepeg]

It's the truth. Business 101

i'm not surprised about the facts, i'm surprised you aren't memeing in here... why are you breaking kayfabe

 

[Satan]

i'm not surprised about the facts, i'm surprised you aren't memeing in here... why are you breaking kayfabe

dont @ me

 

[Cody Webster]

HFBoards cluelessly discussing the finances of a tech company during a major growth period. Absolutely hilarious.

Enlighten us, entrepreneur

 

[aleshemsky83]

TJ is completing his metamorphosis into rizer

 

[Archangel]

RIP Ix. Find a real job

How did they lose 1.2 billion? My guess due to the fact they have legal fights all over the globe. I say the losses are soft to try to scare of other companies from doing it. Because it is not a publicly traded company they do not actually have to realise their actual data

 

[Kurtz]

Simply growing pains en route to their driverless fleets that will be in full effect in several years.

 

[Finnish your Czech]

How did they lose 1.2 billion? My guess due to the fact they have legal fights all over the globe. I say the losses are soft to try to scare of other companies from doing it. Because it is not a publicly traded company they do not actually have to realise their actual data

apparently they lost 2 billion over 2 years trying to grow in china, probably a big part of it

 

[izzy]

Satan isnt just a meme

 

[Satan]

im more than just a pretty meme

 

[BigMac1212]

Horatio Caine: You can say this company...

(puts on sunglasses)

made an Uber loss.

 

[karnige]

they are right. right now uber is cheap to drive away the competition. ala walmart 15-20 years ago. once they were the kings prices rose.

 

[tony d]

Interesting, it seems to be popular given how cheap it is. Wonder how long the prices will stay cheap.