Uber Records Minimum $1.27 Billion Loss in First Half of Year

Uber Records Minimum $1.27 Billion Loss in First Half of Year

Though Uber Technologies Inc. is not a public company, it gets dozens of its shareholders on a conference call after every three months to reveal report on the ride-hailing giant’s business performance. The report is given by Gautam Gupta, the Head of Finance at Uber. The investors were reported on Friday by Gupta that the company is suffering from losses during the second quarter.

The company had managed to report profits during the first quarter in the U.S. but now Uber is again into losses during the second quarter. According to sources familiar with the subject, the company reported approximately $520 million in losses before interest, taxes, depreciation and amortization during the first quarter of 2016. However, the losses have gone deeper to exceed $750 million during the second quarter, inclusive of nearly $100 million loss in the U.S.

This implies that the total loses being suffered by Uber during the first half of 2016 is a minimum of $1.27 billion. The sources further revealed that Gupts informed investors that the primary reason behind the losses being suffered worldwide is subsidies for Uber's drivers A spokesman for the company declined to give any comment in this regard.

You won't find too many technology companies that could lose this much money, this quickly. For a private business to raise as much capital as Uber has been able to is unprecedented," said a Business Professor at New York University, AswathDamodaran, who has written skeptically of Uber's astronomical valuation on his blog.

However, there has been a drastic increase in the number of bookings from the first quarter to the second quarter of the year. The bookings exceeded $5 billion in the second quarter as compared to over $3.8 billion in the first. On the basis of the widely followed accounting principles, an increase of approximately 18% was reported in net revenue, up from approximately $960 million to approximately $1.1 billion.


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