Uber, lifting financial veil, says sales growth outpaces losses

Brittany BishopApr 16, 2017

Uber opened up its books in an interview with Bloomberg this week, and claimed that its revenue growth is outpacing its losses, which number in the billions for the year.

While gross bookings more than doubled to $20billion, net revenue stood at $6.5 billion, the report states. In numbers that excluded its China business - Uber sold its operation to rival Didi Chuxing last summer, ending an expensive rivalry that cost the company at least $1 billion in losses a year ago - Uber insisted its sales growth outpaced its losses.

Uber did not report its first-quarter numbers saying they were in line with expectations. The company said it's pleased to see revenue growth far exceeding losses last year and that its business is still performing well this year even as it faces unyielding controversy.

"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 drives", Uber's regional general manager of the USA and Canada, Rachel Holt, said in a statement.

The ride-hailing company admitted to using a secret program called Greyball to deceive law enforcement officials.

The company is in the process of hiring a chief operating officer to help Kalanick manage it, fix its tarnished image and improve its culture.

Uber sold its China business to domestic rival Didi Chuxing in August past year.

For the final quarter of 2016, gross bookings increased 28 per cent from the previous quarter, to $US6.9 billion. The company generated $2.9 billion in revenue, a 74 percent increase from the third quarter.

In the last quarter of 2016, losses rose 6.1% to $991 million. The financials show that Uber continues to grow with impressive speed and despite its staggeringly high losses might be finding a handle to its constant cash burn. That tally would be even larger if other costs which would be counted under generally accepted accounting principles, or GAAP, had been factored.

Business Insider asked Uber for clarification on how entire UberPool fares can be counted towards revenue when it has to pay drivers out of those fares.

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