Published: Sun, August 27, 2017
Finance | By Kristine Clayton

Uber Posts Loss, Bookings Increase

Uber Posts Loss, Bookings Increase

A blog post written by a former employee touched off an investigation into its workplace culture that resulted in numerous firings and Travis Kalanick's resignation from his post as Uber's CEO.

The surprisingly positive quarter also saw an increase in adjusted net revenue and a decrease in adjusted net loss.

In the three months to June, Uber recorded a revenue of $1.75 billion, as losses dropped by 9% over the same period - equating to $645 million. The results show that Uber continued to make progress on narrowing its losses while growing its business, even as the company responded to a relentless cascade of scandals.

Following Uber's scandal-ridden year, four mutual fund firms have chose to trim their investments in the company, suggesting that months of controversies were affecting its $68 billion value and that Uber really needs to solve its myriad of problems.

The Benchmark lawsuit filed in a DE court accused Kalanick of fraud, breach of contract and of plotting to manipulate the board of directors to allow him to return as CEO following his resignation in June. Immelt or a similar candidate would be tasked with keeping Kalanick, who remains a director of Uber, on a short leash while ensuring the company both grows and remains stable.

Since 2010, Uber has raised more than $15 billion from investors, allowing it to operate at a significant loss. Uber is still on the process of finding its new CEO. It bent to mounting pressure from drivers in June by adding the option for customers to tip within the app. Uber said it has paid out more than $50 million in gratuity since then. Currently, the company has $6.6 billion in the bank, down from roughly $7.2 billion in the first quarter.

Sexual harassment, an overthrown chief executive, bitter boardroom in-fighting and a major lawsuit have not affected Uber's business.

According to Uber, its adjusted net loss fell nearly nine per cent quarter-over-quarter to US$645 million and over 14 per cent year-over-year.

Revenue came in at $1.75 billion, up from $1.5 billion in the first quarter and about $800 million during the same period one year ago.

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