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

The ride-hailing service Uber, for the very first time, opened up about the finances.

Uber said it brought in $6.5 billion in revenue in 2016, and its gross bookings doubled for the year to $20 million.

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 past year.

If Uber Technologies Inc. had been a public company in 2016, it would have been among the top 10 biggest money losers. Its net revenue, after drivers took their cut, totaled $6.5 billion for the year. If you take into account Uber's operations in China, which it sold to local rival Didi Kuaidi a year ago, its losses likely top $3 billion.

"We're fortunate to have a healthy and growing business, giving us the room to make the changes we know are needed on management and accountability, our culture and organization, and our relationship with drivers", Rachel Holt, Uber's regional general manager for USA and Canada, said in a statement provided to CNNTech.

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Using the figure of $3.8 billion as a loss, Uber had a profit margin during 2016 of -58.5%. Travis Kalanick, the CEO, said he's seeking a chief operating officer to help right the ship.

Kalanick, known for taking a hard line in battles with regulators and taxi operators, has been humbled by recent events which included the release of a dashcam video showing him berating and cursing at one of Uber's drivers. The company was spending aggressively to compete in China, with about $1 billion in losses there previous year, bringing its losses to $3.8 billion globally. It's hard to compare Uber's business with any public company.

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.

Since it was founded in 2009, Uber has burned through at least $8 billion. At the same time, losses - which do not take into account employee stock compensation, some investments in real estate, vehicle purchases and other expenses - rose 5% to $991 million, the company said.

This post was syndicated from Breaking News, Nigeria News and World News - The Guardian Nigeria.

  • Rita Burton