Uber Lost $2.8 Billion in 2016

uber financial report

Uber, the San Francisco, California-based ride hailing service, is living from one corporate crisis to another. Uber has revealed, they have lost $2.8 billion in 2016, and that too after excluding the China business that was sold last August to their rival Didi Chuxing. Travis Kalanick, the CEO, had said earlier Uber was losing about $1 billion every year in China.

The Financials of Uber

However, the analysts might still be happy with Uber’s total revenue and the overall growth story. For instance, their gross bookings have hit the $20 billion for the first time, which is more than double of their bookings for 2015. The net revenue is $6.5 billion, after deducting the driver’s cuts. On a quarterly basis, the sales growth of the business looks impressive, and the losses remain constant.

Gross bookings went up by an impressive 28 percent in the last quarter of 2016. However, the losses have grown to $991 million in the period. At $2.8 billion, the loss is still staggering, which will surely worry the investors.

Uber is presently valued at $68 billion.

The regional general manager of Uber for the United States and Canada issued a statement saying, “We’re fortunate to have a healthy and growing business, giving us the room to make the changes we know are needed on management and accountability, our culture and organization, and our relationship with drivers”.

Uber is Trying to Boost Confidence

Uber released those figures even though they are not required to publicly reveal their financials, as the business is privately held. It seems the disclosure is an attempt to boost the confidence of employees and investors and show everyone that the business is growing strongly after a series of public relations crises.

Presently, the company is carrying out an investigation after a former female employee alleged that there is a lot of harassment and sexism inside Uber. In January, there was a viral boycott of Uber. People on social media urged customers to #DeleteUber after the company tried to break up a strike of their drivers forcefully. The company CEO was also caught on camera arguing with the taxi drivers.

Uber is now trying to hire a COO who will help Travis Kalanick repair their culture and tarnished image after a series of setbacks in recent times. They have to fix these issues, as Uber has plans of going public soon to raise capital.