Uber brought in $2.8 billion in revenue in the second quarter of 2018, but ultimately lost $891 million thanks to increased spending by the ride-hailing company, according to Bloomberg.
Uber, which is privately held but chooses to report its quarterly earnings to investors and the public, is seeing some growing pains from its massive effort to scale globally. It’s cash-burn rate wasn’t as bad as the same period last year, when the company reported losing roughly $1.1 billion. But it’s a big drop from the previous quarter, when the company posted a rare profit thanks to its decision to sell its businesses in southeast Asia and Russia to local rivals.
Uber is planning for an initial public offering in the second half of 2019, Uber CEO Dara Khosrowshahi has said. That could be complicated by Uber’s habit of burning large quantities of cash. The company lost $4.5 billion last year, and has burned through $11 billion since launching in 2009. But Uber still has $7.3 billion cash on hand, according to Bloomberg, which certainly gives it some running room before an IPO.
Bloomberg characterized the report as Khosrowshahi embracing the company’s “growth above profit” ethos. But it has cast a spotlight on some of Uber’s more expensive, trouble-prone projects. Specifically, the company’s beleaguered self-driving car operation is said to be losing as much as $200 million a quarter, The Information reported today. And Bloomberg noted that Uber is being urged by investors to off-load the unit.
Source : TheVerge.
TAXI LEAKS EXTRA BIT : by Tom Scullion
Uber record loss of £702m for the latest quarter.
The good old 'Gig Economy'!
Isn't it supposed to revolutionise the world and show us the way to the future, with successful, dynamic, get up and go business strategy, leaving behind those Luddite riddled, antiquated businesses like London's black cabs, you know, businesses that have been around for hundreds of years?
The Gig Economy, led by their own version of 1st World War Generals, taking their armies over the top of the trenches, to certain destruction. But the Generals are ok. They're safely hidden well away from the front line, ensconced in penthouse offices with luxurious surroundings & mega salaries, bonuses, fine dining & hob-nobbing with bent politicians and bureaucrats the world over.
Once the masses realise the carnage inflicted upon them, their families & their society, then maybe we'll see those 'Generals' and their lickspittle politician friends hanging upside down from proverbial meathooks in market squares, across the country.
Because by then, even the most ardent GiG supporter will come to realise that all 'GiG' ever stood for was 'Greed is Good'.