Uber doubles revenue but is still bleeding cash, according to a new financial report
Uber doubles revenue but is still bleeding cash,
according to a new financial report
Tracey Lien Tracey
LienContact Reporter
Uber Technologies Inc. doubled its gross bookings to $20
billion in 2016, but the ride-hailing giant is still operating at a loss of
$2.8 billion, according to financial information shared with Bloomberg.
Because it’s a privately held company, Uber doesn’t have
to disclose its finances publicly; past reports of the company’s financial
situation were the result of document leaks. But the ride-hailing firm
proactively shared its finances, Bloomberg reported, presumably to highlight
its ongoing revenue growth and shrinking losses despite the recent string of
scandals that have thrown the company’s business, culture and leadership into
question.
“We’re fortunate to have a healthy and growing business,
giving us the room to make the changes we know are needed on management and
accountability, our culture and organization, and our relationship with
drivers,” Rachel Holt, who runs Uber’s operations in North America, said in a
statement. The company declined to comment further on its finances.
The majority of the bookings went to Uber’s drivers, who
typically take home around 75% of each fare, leaving the San Francisco firm
with $6.5 billion in revenue. The company’s losses exclude its China business, which
it sold last summer to competitor Didi Chuxing.
The finances also show that during the last three months
of 2016, Uber’s gross bookings increased 28% from the previous quarter to $6.9
billion, its revenue increased 74% to $2.9 billion and it recorded a loss of
$991 million.
The release of Uber's earnings come after the company has
experienced crisis after crisis this year, including accusations of workplace
sexual harassment and cover-ups, a toxic culture and a recent exodus of
executives, such as head of communications Rachel Whetstone, President Jeff
Jones and Vice President of Maps and Business Brian McClendon.
Copyright © 2017, Los Angeles Times
Comments
Post a Comment