The company’s self-driving unit continues to be a drain on cash
Photo by Philip Cheung for The Verge
Uber brought in $2.8 billion in revenue in the second quarter of 2018, but ultimately lost $891 million thanks to increased spending by the ride-hailing company, according to Bloomberg.
Uber, which is privately held but chooses to report its quarterly earnings to investors and the public, is seeing some growing pains from its massive effort to scale globally. It’s cash-burn rate wasn’t as bad as the same period last year, when the company reported losing roughly $1.1 billion. But it’s a big drop from the previous quarter, when the company posted a rare profit thanks to its decision to sell its businesses in southeast Asia and Russia to local rivals.
IT’S A BIG DROP FROM THE PREVIOUS QUARTER
Uber is planning for an initial public offering in the second half of 2019, Uber CEO Dara Khosrowshahi has said. That could be complicated by Uber’s habit of burning large quantities of cash. The company lost $4.5 billion last year, and has burned through $11 billion since launching in 2009. But Uber still has $7.3 billion cash on hand, according to Bloomberg, which certainly gives it some running room before an IPO.
Bloomberg characterized the report as Khosrowshahi embracing the company’s “growth above profit” ethos. But it has cast a spotlight on some of Uber’s more expensive, trouble-prone projects. Specifically, the company’s beleaguered self-driving car operation is said to be losing as much as $200 million a quarter, The Information reported today. And Bloomberg noted that Uber is being urged by investors to off-load the unit.
Khosrowshahi has made moves to diversify the business since taking the reins nearly a year ago. Earlier this year, Uber acquired dockless bike-share company Jump and is preparing to launch its own electric scooter sharing service as well.
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