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Uber’s losing streak continues in 2016

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CIOL Writers
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CIOL Uber reportedly planning ride-sharing services for bus and mini-vans in India

For a layman, Uber with its world-wide operations would be a big, profitable company. Big it is, undoubtedly but not profitable, unfortunately. In its recent conference call with shareholders, Uber’s head of finance, Gautam Gupta reported that the company has lost $1.27 billion in just the first half of 2016, according to Bloomberg. Apparently, most of those losses come from compensation for its drivers worldwide.

The news isn’t surprising given Uber’s track record of losing cash consistently throughout its existence. In 2015, Uber lost more than $2 billion total and has lost over $4 billion in its seven-year history. Though it's not uncommon for startups to bleed cash during their initial years trying to build significant markets and battle for market share but the amount of money that Uber has been losing - and the fact that those losses keep growing is definitely unparalleled.

Even in the U.S., where Uber had turned a profit during its first quarter, the company was once again losing money. Bloomberg also says that the company is doing its best to maintain its lead in the ride sharing space in the US -- to that end, it has engaged in a price war with Lyft which is contributing to its losses. The company specifically said this week that it was willing to spend money to maintain its lead in the US, but the larger question is how long can Uber continue to lose this much cash.

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