Uber lost at least 1.27 billion U.S. dollars in the first half of the year, with huge subsidies being the main reason.

August 16, 2024

According to sources quoted by Bloomberg News from a number of insiders in the industry, Uberâ€™s loss in the first half of 2016 was at least US$1.27 billion. Among them, the distribution of subsidies to drivers is the main reason for losses.

Uber's major investor Goldman Sachs and Amazon CEO Jeff Bezos have not commented on the above news.

According to reports, Uber held a conference call with investors on Friday. The conference call was hosted by Gautam Gupta, chief financial officer of Uber, and focused on the financial status of Uber.

After the meeting, there were informed sources: Uber net revenue in the first quarter of this year was about 960 million US dollars, a loss of about 520 million US dollars (eBITDA before interest and tax depreciation and amortization). In the second quarter, net revenue was approximately US$1.1 billion, and the loss further deteriorated to approximately US$750 million. This means Uberâ€™s total loss for the first half of this year is at least US$1.27 billion.

According to the analysis, these losses may be caused by a number of reasons. The most important factor is the subsidy expenditure for the huge driver group. Uberâ€™s long-term competition with â€œdiffusionâ€ in the Chinese market and Lyft, the second largest car platform in the US market, is â€œexpensiveâ€. It is alleged that in the Chinese market, behemoths have beaten competitors and suffered huge losses. However, as early as this month, Didi travel announced the acquisition of Uber China, the company's overall valuation will reach 35 billion US dollars. In this regard, foreign media pointed out that Uber will not see a loss in the Chinese market in the future, and its total annual loss should also decline from the previous year. According to previously published data, Uber lost at least 2 billion U.S. dollars last year.

Although it has been losing money on the whole, according to news released by the media in April this year, Uber has actually achieved partial profits in individual regions of the US and Canadian markets.