Bloomberg’s Eric Newcomer reported that on a recently Uber quarterly call with shareholders, the company’s head of finance, Guatam Gupta announced that Uber’s losses continue to escalate. Total losses in the first half of 2016 totaled an astounding $1.2 billion. According to Bloomberg’s sources, there are several reasons for this. For one, subsidies for Uber's drivers are responsible for the majority of the company's losses globally. On top of that, Uber has been investing billions of dollars in China and it’s yet to turn a profit there. And of course, there’s staving off competition. Most notable, Uber has been engaged in a heavy price war with Lyft throughout the year to expand its market share as well as gain ground over other competitors in each market around the world. Uber told investors that it's willing to spend aggressively to do so.
How do they lose that much.
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I strongly believe the growing number of settled and impending lawsuits they have been dealing with has immensely contributed to this great loss .
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As frequent Uber / Lyft rider to and from the airport... the drivers all complain about Uber. No complaints about Lyft... but they offer 1/2 price ride a last month and are now offering 75% off.
Yes it may be waning as the economy turns down.
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I am not that familiar with Lyft, but I do have a few friends who Uber is their source of livelihood.
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