Uber doubles revenue but is still bleeding cash, according to a new financial report
Uber Technologies Inc. doubled its gross bookings to $20 billion in 2016, but the ride-hailing giant is still operating at a loss of $2.8 billion, according to financial information shared with Bloomberg.
Because it’s a privately held company, Uber doesn’t have to disclose its finances publicly; past reports of the company’s financial situation were the result of document leaks. But the ride-hailing firm proactively shared its finances, Bloomberg reported, presumably to highlight its ongoing revenue growth and shrinking losses despite the recent string of scandals that have thrown the company’s business, culture and leadership into question.
“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,” Rachel Holt, who runs Uber’s operations in North America, said in a statement. The company declined to comment further on its finances.
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. The company’s losses exclude its China business, which it sold last summer to competitor Didi Chuxing.
The finances also show that during the last three months of 2016, Uber’s gross bookings increased 28% from the previous quarter to $6.9 billion, its revenue increased 74% to $2.9 billion and it recorded a loss of $991 million.
The release of Uber’s earnings come after the company has experienced crisis after crisis this year, including accusations of workplace sexual harassment and cover-ups, a toxic culture and a recent exodus of executives, such as head of communications Rachel Whetstone, President Jeff Jones and Vice President of Maps and Business Brian McClendon.
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