In the latest episode of problems with Uber, Uber has revealed some of its finances, which showed that it lost a lot of money last year.
Uber Loses Money
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Uber has revealed some of its finances, maybe to distract people from the controversies its mired it. Uber is a private company, and the law does not require it to reveal this information. Uber has told Bloomberg that its sales growth is faster thaIt’sosses. Its total bookings (or revenue collection from drivers) in 2016 was $20 billion. This is double the amount they earned last year. The company earned around $6.5 billion from that amount after adjustments. Sounds good? Guess how much they lost last year. Uber’s net losses for the year were $2.8 billion, which excluded the $1 billion it lost the last year from the failed venture in China. If you add these losses, the revenue figure won’t impress you any longer. Uber would have been amongst the top 10 biggest losers financially in 2016 if it were public. Uber did not reveal all of its finances to Bloomberg, it’s total bookings for the last 3 months of 2016 were 28% higher than the last quarter. So, it’s revenue (which was $2.9 million) was 74% more. Unfortunately for Uber, the last quarter of 2016 was the same as the rest of the year, and the losses for that time frame were 6.1% higher at 991 million. So, they lost a lost of cash in one-quarter alone. The $6.5 billion net revenue might not be a true figure because it does not compensate for employees’ stock compensation, real estate investments, vehicle purchases, and some other expenses. Uber also calculates the whole amount of UberPool fares as revenue, even the part taken by drivers. For other, normal Uber rides, Uber only counts its own portion of the fare. Money is neither the biggest problem of Uber nor their only one. It had several problems like the sexual harassment allegation by a former employee who told that Uber’s HR constantly ignored her complaints. Uber is also involved in a legal battle with Alphabet. Alphabet accuses Uber for stealing its car technology. Some of the employees also have fishy business practices. Uber also probably uses a tool known as Greyball to stop local authorities from hailing a ride and also ran a program named Hell to spy on Lyft’s drivers for 2 years.
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Let’s see how more Uber has to go through before it gets its act together.
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