Last Updated on 2017-05-21 , 1:41 pm
Mention Uber and most will tell you about their $5 Uber Pool promotion. With Uber giving $5 rides and free rides to referrals like crazy, you’d have thought that the company has more than enough money to burn, right?
Wrong, because Uber has been losing money.
Or to be more exact, a lot of money.
A Whooping $1.27b Loss!
After boasting its profitability early in the year, Uber ironically reported a loss of $520 million before interest, taxes, depreciation, and amortisation for the first quarter. According to Bloomberg, losses for the second quarter significantly surpass $750 million, including an approximate $100 million shortfall in the States.
In short, Uber’s total loss for the early half of 2016 is at least $1.27 billion.
Here’s Why
The reasons for such astronomical losses are, according to Newshub, that Uber is still in the growth phase and is spending big with the objective of monopolising the market. Moreover, it had invested heavily in Chinese and Indian markets, and spent $930 million on self-driving cars.
Experts predicted losses will persist until Uber’s competitor, Lyft, is out of business but questioned the strategy’s sustainability. Driver subsidies account for majority of the stated losses, said Bloomberg documents leaked by
The Information showed Uber paid out $2.72 billion to drivers in the first half of 2015. In comparison, Uber loss $72 million to promotions and discounts in 2016. Uber has been in the red quarter after quarter. It reported a loss of $2 billion and at least $4 billion in its entire history of seven years.
The State of Uber
According to CNN, early this year, Uber sold its operations to its Chinese rival, Didi Chuxing, after making annual losses of $1 billion in China.
Uber received an 18% share from the deal, making it the largest shareholder as well as raising $16 billion. The company was previously valued at $68 billion, said CB Insights.
Always bored during your commute to and fro work or school? Here’s the best solution: download our app for new articles, Facebook videos and YouTube videos that are updated daily…and most importantly, exclusive contents that are only available in our app! It’s your perfect companion for your daily commute!
Click Here to Download the App!
Featured image: businessofapps.com
This article was first published on goodyfeed.com
Watch this for a complete summary of what REALLY happened to Qoo10, and why it's like a K-drama:
Read Also:
- 21YO Stabbed Actor Ryan Lian in The Face At Least 3 Times
- Summary of What Really Happened to Qoo10, Simplified for You
- 62-Year-Old Tampines Man Found Dead After Missing Daily “Good Morning” Messages
- 5 Places In S’pore To Get Christmas-Themed Cakes Under S$80
- Mister Donut Launching Pikachu & Poké Ball Donuts From 1 Dec 2024 To 19 Jan 2025
- Vietnamese Married S’porean to Get Long-Term Pass, But Wanted a Divorce When Pass Was Not Approved
- Summary of the Places to Count Down to 2025 in S’pore
Advertisements