Even though Uber Technologies Incorporated exited from the Chinese market, its financial losses remain mind-boggling. Are you aware that the company has lost at least $2.2 billion in the first 9 months of the Financial Year 2016? Are you also aware that in the 3rd quarter, it has lost at least $ 800 million, excluding its operations in China.
It’s important to note that Uber’s revenue has been steadily growing, even after exiting the most populous country in the world.
Between January and September 2016, the corporation generated net revenue amounting to approximately $3.76 billion. According to reliable sources, Uber will probably generate more than 5.5 billion US dollars in net revenue by the end of the 2016 Financial Year.
The San Francisco-based company hasn’t officially disclosed its financial performance. However, its valuation has risen to $ 69 billion. This means that Uber’s valuation on paper exceeds that of Twitter Incorporated and General Motors Company combined.
In the 3rd quarter, the company’s total value of fares paid by riders was a dismal $5.4 billion. This is an increase from $ 3.8 B and $ 5 B in the first and second quarters respectively.
In the 3rd quarter, Uber’s net revenue was $ 1.7 billion, an increase from $ 960M and $ 1.1B in the first and second quarters respectively.
The company’s financial results are not leaking for the first time. They have leaked before. The financial results of the 3rd quarter were first reported by The Information, a renowned technology news site. The first quarter’s financial results were allegedly leaked by Bloomberg.
In 2015, Uber Technologies Incorporated allegedly lost more than $ 2 billion. Judging by the huge loss made in the third quarter of 2016, the company’s financial state may be worsening.
The aforementioned figures are exclusive of interest, stock based compensation and taxes. Therefore, the company may find itself in a serious financial crisis if appropriate actions aren’t taken.
In its seven-year run in the industry, Uber Technologies has lost at least $4 billion. Due to this continuous cash drain, the company whose investors include Amazon.com, Benchmark Capital, and Goldman Sachs, has been actively seeking to raise billions of dollars every couple of months. The most significant amount yet, was when Saudi Arabia’s Public Investment Fund awarded them with $3.5 billion in June.
Sources: Bloomberg Technology, Wall Street Journal, Business Insider