Published: Sun, April 16, 2017
Business | By Sandy Mccarthy

Uber Value: Company Increases Revenue, Loses $2.8 billion In 2016

Uber Value: Company Increases Revenue, Loses $2.8 billion In 2016

Uber did not report its first-quarter numbers saying they were in line with expectations.

After a string of corporate crises, Uber is taking the unusual step of releasing financials to highlight its business growth.

The numbers show Uber is making money, which is a good sign for investors, however it also shows the company losing tons of money.

As a private company, Uber (or, in its full name, Uber Technologies Inc) is not required to publicly report any annual or quarterly figures.

"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's North America regional general manager Rachel Holt said in an email statement to AFP.

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Uber is now looking for a new chief operating officer to help Kalanick run the company. In the fourth quarter, Uber says it booked $2.9 billion in revenue, which represented a 74% increase from the prior quarter.

The majority of the bookings went to Uber's drivers, who typically take home around 75% of each fare, leaving the San Francisco firm with $6.5 billion in revenue.

While the rate of sales growth compared with losses is encouraging, Uber is still losing a significant sum, said Evan Rawley, a business professor at Columbia University. Furthermore, Uber's loss statement "doesn't account for employee stock compensation, certain real-estate investments, automobile purchases, and other expenses". That tally would be even larger if other costs which would be counted under generally accepted accounting principles, or GAAP, had been factored.

Now valued at $69bn by investors, Uber has spent at least $8bn since it was founded back in 2009. If you take into account Uber's operations in China, which it sold to local rival Didi Kuaidi previous year, its losses likely top $3 billion. Factoring in its China subsidiary, which it sold in July, the number is likely greater than $3 billion for the year.

Uber received a valuation of $68 billion in a June 2016 funding round, and boasts the highest valuation of any company in The Wall Street Journal's billion-dollar club. It's hard to compare Uber's business with any public company.

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