August 26, 2016
Uber Technologies Inc. is in uncharted territory. The ride-hailing company’s mounting losses so far in 2016 totaled at least $1.27 billion, even though bookings and net revenues are up.
That puts the company in rare company, even compared to Amazon. The online retailer famously built market share and value while losing money, but its biggest loss ever was $1.4 billion in 2000.
Uber says driver subsidies are the culprit for global losses – especially in China. But even that may soon evaporate from the loss column, since the company agreed to exit China in return for $1 billion and a 17.5% stake in competitor Didi Chuxing.
The company also just launched a customer loyalty program in a handful of cities, called Uber Plus. Similar to Amazon Prime, subscribers can pay a monthly fee and receive set fares for up to 20 rides.
For comments, questions or concerns, please contact Dennis Kaiser
Image of Uber’s Travis Kalanick by Dan Taylor/Heisenberg Media