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Uber loss tops $1bn loss ahead of planned IPO next year

Uber posted a loss of $1.07bn (£821m) in the three months to September, as the ride-sharing firm prepares for a public stock offering next year.

The US company's net losses widened sharply on a quarterly basis as revenues rose only slightly.

Uber was recently valued at $72bn, making it one of the most valuable privately held firms in the world.

But it is under pressure to become more profitable for a planned offering of its shares to the public next year.

Net losses widened sharply to $1.07bn from $891m, figures from Uber showed, as revenues and bookings rose only slightly.

But losses were down 27% compared to the same period last year, according to Reuters.

"We had another strong quarter for a business of our size and global scope," Uber chief financial officer Nelson Chai said in a statement.

"As we look ahead to an IPO and beyond, we are investing in future growth across our platform, including in food, freight, electric bikes and scooters, and high-potential markets in India and the Middle East where we continue to solidify our leadership position."

Revenues rose by 5% on the previous quarter to $2.95bn, while gross bookings were up 6% at $12.7bn.

Bookings growth slid into the single digits on a quarterly basis at the start of this year, Reuters said.

Japan's Softbank has taken a 15% stake in Uber in a deal which foresees an initial public offering by Uber next year.

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IDFIMH

my definition of a strong quarter fo a business that size is $100M to $1000M PROFIT

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Can't ever see them ever making a profit ,so many other companies are coming into all their various markets.

Uber aren't in it for the taxi supply market, they're in it for the future driverless cars/taxi/delivery/freight business.

They're just using the taxi side as a test and development programme so that when driverless becomes common they'll be the technology leaders.

Their vision is one where nobody owns a car but subscribes to a fleet of driverless vehicles available 24/7 that can be summoned as needed, when not in use as a taxi other businesses can 'hail' them to do deliveries/transport goods etc. They may be losing money at the moment but this is a long term project, if it works then in 20-30 years it will pay off big time. At the moment they are building the platform, resources, technology and infrastructure needed.

They are never going to make money out of the taxi/PH trade. I repeat never.

Some very bright folks who have studied economics for many many years have written some great blogs as to why Uber is akin to the Emperor's new clothes.

And I agree with their analysis.

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IDFIMH

But they would have run out of money long before then.

Uber will be taken over in their driver-less cars quest, should it actually happen in our lifetimes, by the major car makers.

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IDFIMH

Can some please explain to me how the more a Business loses the more it goes up in Value?

I'd have thought it would be the more it makes the more it's worth.

everyone believes that investing in uber will be like investing in microsoft in it's early years that incredible fortunes will be made and quite frankly they have had queues of investors pouring billions in

next year they are going to float and mark my word it will be the most successful flotation in history because all the nerds think it is the greatest thing since sliced bread and believe in the future it will be the greatest business colossus in the world with vast fleets of driverless cars generating vast profits

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When you have mug investors willing to p*** money up the wall.

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IDFIMH

It's OK, don't worry folks, they still have about 75 Billion left.

But if all the drivers jobs are gone and all the other jobs in other business manufacturing jobs also go through robotic or autonomous automisation then who's going to be left earning enough money to merit the need of these autonomous systems, lack of demand brought about through mass unemployment will quickly offset and outstrip the envisaged demand that the creators of such machines rely on to make money.

A healthy economy based on a prosperpous workforce generates wealth and in turn that wealth creates the need of a prosperous workforce, you can't have one without the other or you simply snip through the umbilical cord that sends the financial lifeblood back and forth between two bodies.

the workforce will move into or generate new areas of service economy or into arts and crafts people will still have a living just different than in the past

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