Uber hasn’t been so uber lately as Bloomberg reports the popular ride-sharing company already posted a $1.2 billion loss as we enter the third quarter. The company’s money drain was first reported when a conference call happened between Uber’s executive branch and investors for a company evaluation.
According to the report, Uber posted a loss of $1.27 billion in just the first half of 2016. Now that’s a lot of guap.
The company’s finance chief, Gautam Gupta, stated that Uber’s loss can mainly be attributed to subsidies used to compensate its drivers around the world, mainly China. The compensation however is more severance as the company announced to be pulling out of the Chinese market earlier this month. Their market share was sold to Didi, a Beijing-based ride-hailing program. Losses have amounted to at least $1 billion from subsidies in China alone.
Though Uber’s loss of cash isn’t exactly a first for them.
Last year, Uber lost $2 billion before interest, taxes, depreciation and amortization. In the entirety of the company’s history, they’ve lost a total of at least $4 billion. Despite these money drains, investors are continuing to pledge in Uber’s interest, dumping more money into the company. Helping to stimulate this is stiff competition from other ride-hailing programs like Lyft.
One top of the heavy competition, Uber continues to fight the long-established taxi unions around the world.
As of this report, it is not know when Uber might have the chance to post a profit. Regardless of the clouded future, investors will continue to pour money into the ride-hailing program.
– By: Chris Chin
Photo Source: Uber