Uber isn't having the best 2016, posts $1.2 billion loss already

Travis Kalanick

Reuters Staff

In 2015, for example, Uber lost at least $2 billion before interest, taxes, depreciation, and amortization, and despite being valuated at $69 billion, the company has lost at least $4 billion during its seven-year history. This brings its total losses to an estimated $1.27 billion - over the course of six short months. Uber said bookings went up from $3.8 billion in the first quarter to more than $5 billion in April through June.

Outside of long-term investments in self-driving cars and making a map service, Bloomberg points the finger at driver subsidies.

Uber's recently halted battle with China rival Didi Chuxing was responsible for the bulk of Uber's second-quarter losses, according to a person familiar with the information who asked not to be named because of the private nature of the company's financials. Meanwhile, Lyft has said its market share is more than 20 percent in certain key markets in the USA, and it serves fewer areas than Uber.

In the first quarter, Uber posted a negative EBITDA of $520 million, according to Bloomberg's sources.

But wait: why? Sure, Uber is in nearly every developed country in the world now, and users generally express positive feelings toward the experience of using an Uber versus a taxi. Uber's loss exceeded $750 million including a massive $100 million shortfall in the US. Didi also agreed to invest US$1 billion in Uber Global.

Lyft lowers its fares, so Uber lowers its prices even more, and so on, which forces both companies to pay their drivers more to make up for the dirt-cheap fares.

Uber started off strong and became a leader in the ride-hailing industry, but lately it has lost billions worldwide.

Net revenue, the figure Uber is left with after paying drivers, was said to be $960 million in the first quarter before increasing to $1.1 billion in the second quarter.

One top of the heavy competition, Uber continues to fight the long-established taxi unions around the world. In July, Uber delivered 62 million rides to Lyft's 13.9 million.

Uber is not a public company yet and so its financials are not reported publicly.

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