Business

Uber's revenue hits $6.5 billion in 2016, still makes large loss

Uber's revenue hits $6.5 billion in 2016, still makes large loss”

It made $6.5 billion in net revenue, with $2.8 billion in adjusted net losses, excluding its Chinese business, which it sold last summer. The company declined to comment further on its finances.

Holt added that a healthy business gives them "the room to make the changes we know are needed on management and accountability, our culture and organization, and our relationship with drivers".

The first quarter has finished and Uber has been under much pressure by the public for petulant leadership, executive exodus and an overall broken culture.

The company is in the process of hiring a chief operating officer to help Kalanick manage the company, fix its tarnished image and improve its culture.

Uber sold its China business to domestic rival Didi Chuxing in August past year. On a quarterly basis, they revealed a gross-booking increase of 28% from the third quarter to the fourth quarter, when Uber said it had bookings of $6.9 billion. Uber's gross bookings rose to $6.9 billion in Q4, but its losses teetered close to a billion at $991 million. As Columbia University business professor Evan Rawley told Bloomberg: "That's a lot of cash to burn in a quarter".

Uber said it uses generally accepted accounting principles.

Business Insider asked Uber for clarification on how entire UberPool fares can be counted towards revenue when it has to pay drivers out of those fares. The more Uber's business shifts to the multipassenger service, the faster revenue grows.

Now valued at $69bn by investors, Uber has spent at least $8bn since it was founded back in 2009. The company was spending aggressively to compete in China, with about $1 billion in losses there a year ago, bringing its losses to $3.8 billion globally. Uber recognized the value of those shares in its financial statement, saying global net losses were $1.2 billion after accounting for the sale, taxes and other factors.

Uber received a valuation of $68 billion in a June 2016 funding round, and boasts the highest valuation of any company in The Wall Street Journal's billion-dollar club. The company said it has $7 billion of cash on hand, along with an untapped $2.3 billion credit facility.



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