Uber Loses $800 Million in Q3 2016

[SherDil]

Uber, the ride sharing service that took the world by a storm continues to pile up losses. In the third quarter of this year, Uber lost $800 million.



In the first nine months of 2016, Uber lost more than $2.2 billion, according to sources privy to the matter. During the same time period Uber generated a revenue of $3.76 billion which is expected to soar up to $5.5 billion by the end of the year.

Uber declined to comment on this.

Valued Higher Than Twitter And General Motors Combined
The company’s value has exceeded $69 billion, more value than that of Twitter Inc. and General Motors combined. The bookings for Uber (total amount paid by the riders) was $3.8 billion in the first quarter, $5 billion in the second quarter and $5.4 billion in the third.

The losses and the slowdown in growth can be attributed towards the company leaving China. On 1st August, Uber decided to leave China after facing stiff competition from its competitors there.

Net revenue for Uber (the amount left after paying it’s drivers) was $960 million in the first quarter, $1.1 billion in the second and $1.7 billion in the third quarter.

Losses Increased Compared To Last Year
The losses compared to last year have increased significantly. Last year Uber lost around $2 billion while this year Uber is on track to lose around $3 billion.

It should be noted that these are not exact numbers and may not represent accurate amounts. These numbers also do not include taxes, interest or stock-based compensation.

The company is not doing well in its home market either. In US the company posted a slight profit in the first quarter of 2016 but in the second quarter it posted a loss of $100 million. The loss increased further in the third quarter according to the sources.

On the other hand Uber’s biggest competitor in US, Lyft, has promised its investors that it will keep its losses below $150 million per quarter.

The situation is not looking good for Uber. It remains to be seen how much longer will Uber continue with its current business model.

Via Bloomberg

 

[Shotgunner51]

has promised its investors that it will keep its losses below

It remains to be seen how much longer will Uber continue with its current business model

The company’s value has exceeded $69 billion

How much longer can such loss-making "model" lasts, when monies are funded by its shareholders and creditors? By keep hyping up "model" valuation, bring in rounds and rounds of new monies, just to burn, forever? Uber should hire Timothy Geithner, actually any government or Fed official will do.

http://www.reuters.com/article/us-china-usa-geithner-school-idUSTRE64O16220100525
https://www.ft.com/content/88726e62-4bdb-11de-b827-00144feabdc0
http://archive.boston.com/business/...reassures_china_us_will_solve_deficit_crisis/

 

[somebozo]

How much longer can the management lose for the company, which is funded by its shareholders and creditors? Keep blowing up the valuation to bring in rounds and rounds of new monies, just to burn, forever? Uber should hire Timothy Geithner, actually any government official will do.

http://www.reuters.com/article/us-china-usa-geithner-school-idUSTRE64O16220100525
https://www.ft.com/content/88726e62-4bdb-11de-b827-00144feabdc0
http://archive.boston.com/business/...reassures_china_us_will_solve_deficit_crisis/

Uber is simply starting to look like a money laundering front..no business loses money intentionally especially when its competitors are making money!

 

[Shotgunner51]

Uber is simply starting to look like a money laundering front..no business loses money intentionally especially when its competitors are making money!

Perhaps you are right, after all Uber is a corporation not government, it does answer to its stakeholders.

 

[AZADPAKISTAN2009]

illegal company by passes all laws and regulations

 

[Hamartia Antidote]

How much longer can such loss-making "model" lasts, when monies are funded by its shareholders and creditors? By keep hyping up "model" valuation, bring in rounds and rounds of new monies, just to burn, forever? Uber should hire Timothy Geithner, actually any government or Fed official will do.

http://www.reuters.com/article/us-china-usa-geithner-school-idUSTRE64O16220100525
https://www.ft.com/content/88726e62-4bdb-11de-b827-00144feabdc0
http://archive.boston.com/business/...reassures_china_us_will_solve_deficit_crisis/

Wow!! Hey it isn't a publicly traded company. If angel investors want to throw millions/billions at Uber they know the risks are severe and they have every right to be allowed to do so. It is done every day with the hopes of a big payoff (this is how the rich get richer). When Uber proves itself then they can go IPO, come under the scrutiny of auditors, and have average investors available.

I can't believe people feel angel investors don't know what they are doing.

 

[Loafer]

Wow!! Hey it isn't a publicly traded company. If angel investors want to throw millions/billions at Uber they know the risks are severe and they have every right to be allowed to do so. It is done every day with the hopes of a big payoff (this is how the rich get richer). When Uber proves itself then they can go IPO, come under the scrutiny of auditors, and have average investors available.

I can't believe people feel angel investors don't know what they are doing.

Angel investors have a exit clause at fixed price. This price is many times higher than entry price. Promoters make the cut by selling some of their stake at high valuation.

The sinking ship will go bankrupt or the losses would shift to another new big investor who usually is a mutual fund, pension fund or insurance company which ultimately is public money which goes to the dogs.

Next in line is Tesla Solar city and spaceX

 

[Hamartia Antidote]

Angel investors have a exit clause at fixed price. This price is many times higher than entry price. Promoters make the cut by selling some of their stake at high valuation.

The sinking ship will go bankrupt or the losses would shift to another new big investor who usually is a mutual fund, pension fund or insurance company which ultimately is public money which goes to the dogs.

Next in line is Tesla Solar city and spaceX

As I said it isn't a publicly traded company. So if some hedge fund is investing pension money those in charge of the pension/mutual fund know full well they are going outside the norm. They would have to fully alert their clients. It is unlikely a pension fund would be allowed such risk. There are rules to keep companies from doing this easily.

SpaceX isn't public either so they don't have average investors - just high risk ones. So those investors know the deal.

Tesla is public.