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Uber loses over $800m on $1.7b net revenue in third quarter

12/20/2016| 11:01:59 AM| 中文

In the third quarter, Uber lost more than USD 800 million, not including its Chinese operation.

Even as Uber Technologies exited China, the company's financial loss has remained eye-popping. In the first nine months of this year, the ride-hailing company lost significantly more than USD 2.2 billion, reported Bloomberg. 

At the same time, the company's revenue has continued to grow even after leaving the world's most populous country. Uber generated about USD 3.76 billion in net revenue in the first nine months of 2016 and is on track to exceed USD 5.5 billion this year.

Uber, a closely held company based in San Francisco, has stayed mum about its financial performance even as its valuation has soared to USD 69 billion, making it more valuable on paper than General Motors and Twitter combined. 

Uber's bookings—the total combined value of the fares that riders pay—were USD 5.4 billion in the third quarter, an increase from USD 5 billion in the second quarter and USD 3.8 billion in the first. 

The slowdown in Uber's bookings growth can at least partially be explained by the company's decision to leave China. Uber came to an agreement with Didi Chuxing to exit China in exchange for 17.5% of the Chinese company. As part of the deal, Didi invested USD 1 billion in Uber. 

Net revenue—the amount of money Uber generates after it pays its drivers—was USD 1.7 billion in the third quarter, growing from USD 1.1 billion in the second quarter and USD 960 million in the first. 

The company is said to have lost at least USD 2 billion last year and is on track to pile up a loss of at least USD 3 billion this year. Uber's loss in the first quarter of this year was about USD 580 million. By the second quarter, the loss significantly exceeded USD 800 million, including China. 

Lyft, Uber's largest U.S. competitor, has promised investors that it will keep its losses below USD 150 million a quarter.

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TAGS: Uber | Didi | car-hailing
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