Uber opened up its books in an interview with Bloomberg this week, and claimed that its revenue growth is outpacing its losses, which number in the billions for the year.
Bloomberg put the ride-hailing giant’s losses at $3.8 billion worldwide in 2016, including $1 billion in China before it sold that business last year. The company told Bloomberg its net losses were $1.2 billion after accounting for the sale of its China business, taxes and other factors.
Uber said it brought in $6.5 billion in revenue in 2016, and its gross bookings doubled for the year to $20 million.
As a privately-held company, Uber is not required to share its financials publicly, the way a company like Microsoft or Amazon does on a quarterly basis. What the numbers show is that Uber’s business continues to grow rapidly, even as it has been in the news for a spate of controversies ranging from everything from lawsuits over self-driving car technology, to executive departures, to sexual harassment claims and more. Uber plans to bring in a chief operating officer to help run the company, and board member Arianna Huffington pledged to hold Uber’s “feet to the fire” to improve gender and diversity issues in the workplace.
In the fourth quarter of 2016, Uber reported losses of $991 million, an increase of about 6 percent over the prior quarter. But during the same time, Uber reported $2.9 billion in revenue, a 74 percent increase from the third quarter, and the company’s $6.9 billion in gross bookings marked a 28 percent increase from the previous quarter. Hence the company’s claim that its revenue is growing faster than its losses.
Uber has burned through approximately $8 billion in eight years, Bloomberg reports, though Uber said it still has about $7 billion in cash, “along with an untapped $2.3 billion credit facility.”
Valued at $69 billion, Uber is the most valuable startup in the world. But it is facing competition from rival Lyft, which this week announced a $600 million round at a $7.5 billion post-money valuation. However, Uber is better funded and has a larger global footprint.
