Bad news for all Uber users and fanatics. The financial stats are in and Uber lost a huge $1.2 billion in the first half of 2016. This announcement was confirmed by the head of finance, Gautam Gupta.
Uber recently held a conference call with their investors to assess and come up with a solution regarding Uber's financial situation.
Uber lost a total of $520 million profit in the U.S. alone during the first quarter of 2016. In the second quarter, the situation worsened and the losses significantly jumped to more than $750 million worldwide, including a $100 million deficit in the U.S.
The company's losses and revenue have grown as the company's global ambition had expanded for it has lost money quarter after quarter starting last2015 with at least $2 billion a year.
This means that the seven-year-old company has a total loss of at least $4 billion in just one and a half year exceeding Amazon.com Inc.'s lost which was known for chasing market value while losing money not bigger than $1.4 billion in 2000.
Experts say that Uber's losses are worrying. According to a business professor at New York University, Aswath Damodaran, we won't any much technology company nowadays that could lose this much money as other technological companies are rising steadily.
Fortunately, Uber may most likely see fewer losses in the future now that they've sold Uber China to another ride-sharing company called Didi earlier this month. The largest global competitor gave Uber a 17.5 percent stake in its business and a $1 billion investment in exchange for Uber's withdrawal. In other words, Uber has lost at least $2 billion in China.
Despite losses, Uber reported tremendous success in the market share where they believes the company still holds between 84 and 87 percent in the U.S market and looking forward to partnering with automakers like Toyota and Volvo to keep the ride sharing market alive.
Meanwhile, Lyft assumed its market share serves fewer areas than Uber with only 20 percent in the U.S market but suffers no losses at all.
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