Uber Losses Narrow, Revenue Climbs Despite String of Controversies

Posted August 27, 2017

The company's shrinking losses are a reflection of its efforts to reduce massive spending on subsidies for drivers and customers, said the Reuters story. Global trips were also up, by 150 percent YoY (excluding China).

Last year, San Francisco-based Uber lost about $3 billion. The results show that Uber continued to make progress on narrowing its losses while growing its business, even as the company responded to a relentless cascade of scandals.

The growth rate for Uber, suggests that the ride-sharing has not been affected by the recent run of scandals but continues to lose money at historical rates and executives had not yet offered any timetable to reach profitability.

Uber has been stumbling from one issue to another for much of this year, facing a lawsuit over stolen trade secrets, a federal criminal investigation concerning the use of its technology to evade regulators, and other more alleged misconduct.

But the ride-hail company, valued at approximately $68 billion, is still losing more than half a billion dollars a quarter. Those numbers include trips in Russia, where Uber last month merged its operations with Russian company Yandex.

On Wednesday, Uber announced that its net loss slipped from $708 million in the first quarter of this year to $645 million in the second quarter.

The company which is actively looking for CEO had $7.2 Billion cash at the end of Q1 which has reduced to $6.6 billion in the quarter.

Jan Dawson, chief analyst at Jackdaw Research, said that the stats released by the group may be showing the situation in a very positive light.

The company is searching for a new chief executive and also lacks a chief financial officer, highly unusual for a company of its size.

Loaded with countless controversies for six months, investors of the transport group ultimately chose to demand its chief executive Travis Kalanick to step down from his position in June.

The fact that Uber was able to post increased bookings and revenue in the second quarter despite all these problems, however, should not come as a sign that the company can take a breather.