Published: Fri, February 16, 2018
Tech | By Tabitha Holland

Uber Quarterly Sales Rose 61% to $2 Billion Amid Heavy Loss

Uber Quarterly Sales Rose 61% to $2 Billion Amid Heavy Loss

However, the company still lost 61 percent to $4.5 billion for all of 2017, more than the $2.8 billion in 2016. On an adjusted basis, excluding stock-based compensation, legal costs, taxes and depreciation, the company lost $2.2 billion for the full year. Uber Technologies has agreed to pay Waymo $245 million in closely held equities, which will give Google's Waymo autonomous auto unit a 0.34% stake in the ride hailing company. But the company also posted a substantial loss of $4.5 billion. Uber also said its US ride-hailing market share fell from 82 percent at the start of a year ago to 70 percent in the fourth quarter.

The increasing revenue is a good sign for the business.

Despite it being a turbulent year Uber, sales reached $7.5 billion. But one thing has not changed: The ride-hailing company is still losing a lot of money. And having Google's support will only increase Uber's value when it launches its IPO late next year. It also reported a negative cash flow of $160 million from operating activities.

The settlement and its improving finances suggest that it is making an effort to achieve its goal for an initial public offering (IPO) in 2019.

Uber isn't publicly traded but has chosen to release select financial information to investors and the public in recent quarters.

Last month, ride-hailing group agreed to sell $10 billion of its stock to a consortium led by Japan's internet giant SoftBank Group Corp. recently for a 15 percent stake, making it the Uber's largest shareholder. While Uber is still on the path of massive growth, the main reason why its revenue now continues to outpace its losses lies in the firm's aggressive cost-cutting efforts spanning various departments; in Q4 2017, its core operating expenses excluding one-time costs amounted to 15.6-percent of its gross revenue whereas almost a quarter of its Q4 2016 revenue went directly into settling such expenses. The previous controversies involved allegations of discrimination, racism, and many top management employees leaving the organization due to inappropriate work culture.

Dara Khosrowshahi, who became the American company's chief executive officer in August 2017, has set out his long-term vision for Uber, which apparently includes running buses, subways, and hire bike systems.

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