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Uber on course to lose US$3 billion this year

By Kenny Yeo - on 25 Dec 2016, 2:11pm

Uber on course to lose US$3 billion this year

Note: This article was first published on 21st December 2016.

(Image source: Digital Trends)

According to reports, Uber is on track to lose over US$3 billion by the end of this year.

Though Uber has exited China earlier this year, the company is still hemorrhaging money at a stupendous rate as it seeks to increase its market share by subsidizing trips.

Reports say that a source familiar with Uber's financials said that the company lost more US$2.2 billion in the first nine months of 2016. In August, we reported that Uber lost over US$1.2 billion in the first six months of 2016 alone.

The source also revealed that Uber lost a staggering US$800 million in the third quarter of 2016.

On a more positive note, the source also said that revenue is growing and would likely exceed US$5.5 billion this year. Bookings have also been increasing quite steadily, even if Uber has exited the lucrative China market.

Still, investors are rightly worried, and it is hard to imagine how long more Uber can continue to burn through its cash reserves at such an alarming rate.

The end goal, presumably, is to build a fleet of self-driving cars, but that venture has met significant hiccups.

One of its self-driving cars ran a red light, and the company has just admitted that its self-driving cars have a problem negotiating bicycle lanes.

Hopefully, 2017 will be a better year for Uber.

Source: Bloomberg

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