Aug 26, 2016 (LBO) – Ride-hailing company Uber Technologies Inc told its private investors that losses increased in the second quarter, even in the U.S., according to a Bloomberg report.
In the first quarter of this year, on the whole, Uber lost about 520 million dollars before interest, taxes, depreciation and amortization, according to sources.
In the second quarter the losses exceeded 750 million dollars, including a roughly 100 million dollar shortfall in the U.S. That means Uber’s losses in the first half of 2016 totaled at least 1.27 billion dollars.
Uber is not a public company, but every three months shareholders get on a conference call to hear the latest details on its business performance from its head of finance, Gautam Gupta.
Subsidies for Uber’s drivers are responsible for the majority of the company’s losses globally.
The company said bookings grew from the first quarter of this year to the second, from above 3.8 billion dollars to more than 5 billion dollars. Net revenue grew about 18 percent.
Uber has raised more than 16 billion dollars in cash and debt. Its latest valuation is 69 billion dollars.
The company has effectively redistributed at least 1 billion dollars to the Chinese working class in the form of heavy subsidies to drivers there, and the company is engaged in a fierce price war with Lyft Inc. this year.