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Uber has lost an incredible US$1.27 billion in the first half of 2016
By Kenny Yeo - on 26 Aug 2016, 10:30am

Uber has lost an incredible US$1.27 billion in the first half of 2016

(Image source: Digital Trends)

Uber's head of finance, Gautam Gupta, recently held a conference call to share details about the company's financial performance and the numbers were not good.

According to reports, Uber supposedly posted loses of about US$520 million in the first quarter of the year before interest, taxes, depreciation and amortization. This was despite Uber finally turning a profit in the first quarter in the U.S.

For the second quarter, it is said that Uber's losses "significantly exceeded" US$750 million. It also made a loss in the U.S., losing around US$100 million.

As it stands, this means that in the first half of 2016, Uber has already lost around US$1.27 billion. According to reports, Gupta told investors that the bulk of these losses stemmed from Uber's subsidies to drivers.

Last year, the company reportedly lost about US$2 billion. In all, the company has lost roughly US$4 billion since its inception seven years ago.

That said, it's hardly game over for the company as it still has access to significant funds. As part of Uber's deal to pull out of China, Didi Chuxing will give Uber US$1 billion in cash for investments.

Reports also say that Uber has roughly US$8 billion left in the bank, and also have access to a US$2 billion credit line and a US$1.2 billion loan. 

It is also backed by some of the biggest names in businesses, including venture capitalist firm Benchmark Capital, and banking firm Goldman Sachs.

Still, it remains to be seen if Uber will ever turn a corner and become profitable.

Source: Bloomberg 


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