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Uber losses continue to mount

Working4peanuts

Well-Known Member
Uber reports Q2 losses of $404 million, up 32 percent from Q1
Megan Rose Dickey
@meganrosedickey / 9 hours ago


While Uber isn’t required to disclose its financial results, Uber has done so for the past few quarters as it gears up to go public next year. In Q2 2018, Uber’s net revenue was up 8 percent quarter-over-quarter, at $2.7 billion. Year-over-year, that’s a 51 percent increase.

Uber recorded gross bookings — the total taken for all of Uber’s transportation services — of $12 billion, a six percent quarter-over-quarter increase and a 41 percent year-over-year increase. But while Uber’s gross bookings increased, so did its losses. In Q2, Uber had adjusted EBITDA losses of $404 million compared to $304 million in losses in Q1.

Uber’s losses added up, given its investments in Eats, India, the Middle East, bikes and scooters. This quarter, Uber expanded Eats into a number of new cities in Europe, the Middle East and Africa, acquired food delivery startup Ando, announced its expansion of JUMP bikes into Europe and made its scooter ambitions official.

Other key stats for Uber’s Q2 2018:

  • Adjusted EBITDA margin: 3.4 percent of gross bookings (in Q2 ’17, that was 6.3 percent)
  • Gross cash: $7.3 billion (+1 billion quarter-over-quarter)
“We had another great quarter, continuing to grow at an impressive rate for a business of our scale,” Uber CEO Dara Khosrowshahi said in a statement. “Going forward, we’re deliberately investing in the future of our platform: big bets like Uber Eats; congestion and environmentally friendly modes of transport like Express Pool, e-bikes and scooters; emerging businesses like Freight; and high-potential markets in the Middle East and India where we are cementing our leadership position.”

While Uber technically had a good quarter, it doesn’t mean that all is well. Regarding Uber’s self-driving car efforts, the company has spent between $125 million and $200 million a quarter over the last 18 months, The Information reports. According to The Information’s sources, some of Uber’s investors are urging the company to get rid of its self-driving car program, which has been the source of many headaches at Uber as of late.

Uber declined to comment on The Information’s reporting.

In March, one of Uber’s self-driving cars struck and killed a pedestrian in Tempe, Arizona. In the weeks and months following the accident, Uber officially pulled the plug on its self-driving car operations in Arizona and laid off self-driving car operators in San Francisco and Pittsburgh.

As Uber prepares for its 2019 IPO, the name of the game is to reduce losses. In July, Uber shut down its self-driving trucks division. But Uber Freight, which matches drivers with cargo needing to be shipped, is reportedly on track to make $500 million in the next 12 months.

Meanwhile, Uber is aiming to take its ride-hail network into the skies with uberAIR. Uber’s plan is to develop and commercially deploy these air taxis by 2023. But in recent months, Uber has lost two key executives; Head of Policy for Autonomous Vehicles and Urban Aviation Justin Erlich and Uber Chief Product Officer Jeff Holden, who oversaw Uber Elevate, left the company.

Khosrowshahi will be joining us at Disrupt SF in September. You don’t want to miss it.

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Working4peanuts

Well-Known Member
  • Thread Starter Thread Starter
  • #2
The company had $12 billion in quarterly gross bookings, which includes rides and Uber Eats, up 6 percent from the previous quarter and about 40 percent from a year before.

Net revenue, which strips out what gets paid to drivers as well as promotions and refunds, was $2.8 billion, up 8 percent over the first quarter and more than 60 percent from last year.

Bookings up 40% while profit increased 60%. Straight out of our pockets!
 

Kodyhead

Well-Known Member
They said uber lost 4 billion last year and they are on track to lose 2.5 billion, that's a big improvement
 

Kodyhead

Well-Known Member
Right. $1.5 billion taken from drivers for the same rides.
Maybe 1 billion lol he did trim a lot of unprofitable fat, and raised booking fees.

But remember he inherited upfront pricing he didn't invent it.

I am sure the new app cost a lot of dough
 

Working4peanuts

Well-Known Member
  • Thread Starter Thread Starter
  • #6
Kalanick didn't raise mileage rates without paying drivers the same percentage they were promised from the get go.

Dara did.

I'm about done doing this. I was out for a few hours today. No rides. I look at the app and my profile pic wasn't there. Obviously I wasn't even connected to dispatch.

Last week, no vehicle. Had to reinstall the app.

Dara is a disaster. Completely incompetent. Nothing is going to save this sinking ship.
 

flynn408

Member
Kalanick didn't raise mileage rates without paying drivers the same percentage they were promised from the get go.

Dara did.

I'm about done doing this. I was out for a few hours today. No rides. I look at the app and my profile pic wasn't there. Obviously I wasn't even connected to dispatch.

Last week, no vehicle. Had to reinstall the app.

Dara is a disaster. Completely incompetent. Nothing is going to save this sinking ship.
Except its not. Its on a very positive track towards their IPO. Just because you're miserable doing it does not make it a sinking ship. I was doing it up in Boston for a while mostly on the side as I got my career gig backhowever due to a family emergency I had to leave that job and come down here where it is really slow and not worth it apparently. I was really hoping it could be a flexible means to hold me over which it is not even close to being so I took my stickers off and haven't even tried in a month. When I go back up I will probably do a little on the side but no more than that. Stop driving, its a great business model for them and not you so replace it with a job that requires more than just downloading an app and passing a BG check or go to a different market.
 

Working4peanuts

Well-Known Member
  • Thread Starter Thread Starter
  • #8
Except its not. Its on a very positive track towards their IPO. Just because you're miserable doing it does not make it a sinking ship. I was doing it up in Boston for a while mostly on the side as I got my career gig backhowever due to a family emergency I had to leave that job and come down here where it is really slow and not worth it apparently. I was really hoping it could be a flexible means to hold me over which it is not even close to being so I took my stickers off and haven't even tried in a month. When I go back up I will probably do a little on the side but no more than that. Stop driving, its a great business model for them and not you so replace it with a job that requires more than just downloading an app and passing a BG check or go to a different market.
Shill.

I predict that by the time they ipo the market cap will be under $20b.

The business model is unsustainable and there are NO barriers to entry.
 

Kodyhead

Well-Known Member
Travis is the one who slashed rates to what they are now. Yes he got a lot of new users but he would of dropped them again and again, he is dead to me.

I am not saying dara is the answer and cure but he is much more qualified to run a company of this size. The fact is every CEO I worked for made a bunch of decisions employees hated, dara is just another one but I still have more faith in him than travis

Travis is brilliant in some ways but he clearly was a terrible business man
 
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