Uber Flushed $1.2 Billion Down The Drain In First 6 Months Of 2016

Ride-hailing giant Uber Technologies Inc. posted losses of at least $1.27 billion during the first half of the year, people familiar with the matter told Bloomberg.

Uber is not a public company, but every three months, dozens of shareholders get on a conference call to hear the latest details on its business performance from its head of finance, Gautam Gupta.

On Friday, Gupta told investors that Uber's losses mounted in the second quarter. Even in the U.S., where Uber had turned a profit during its first quarter, the company was once again losing money.

Read Article

carloslassiter - 8/26/2016 10:58:16 PM

+2 Boost

Sounds like they need to speed up their switch to self-driving cars.

MDarringer - 8/27/2016 9:58:28 AM

+2 Boost

They are only losing money if they are not charging enough for services.

carloslassiter - 8/27/2016 8:12:48 PM

+3 Boost

Darringer might be right, but I suspect Uber will be content to decimate, destroy and defile the taxi industry before they raise any prices.

mre30 - 8/28/2016 7:38:51 PM

+1 Boost

Similar to Tesla, Uber exists to burn investor's cash while trying to validate a business model.

Because Tesla's fixed costs are so much higher, Tesla will fail first.

However, Uber is at equal risk for failure, but perhaps at a slower rate.

The Uber technology has a strong intrinsic value, and it will very likely be acquired by someone - Google or Microsoft are good bets - while once Tesla starts going down the tubes, there will be nothing left over to salvage (except liabilities and legal claims).

Uber is a much better business model than Tesla, but both are kind of on thin ice until they reach profitability.