Uber’s finances are not looking so good, as revealed by the company in its Q2 2018 results.
Uber is not a public company and isn’t required to disclose its quarterly financial results publicly, however it still does so to keep its investors and the general public informed.
Their Q2 earnings for 2018 has taken a fall. All in all, Uber made $2.8 billion in revenue, which is a 51% increase year-on-year but still lost $891 million thanks to the company’s excessive spending. However, this still isn’t too big of a loss as compared to last year when Uber lost $1.1 billion. It’s still pretty significant when compared to Q1 2018 ($304 million).
Bad Financial Habits
The main reason for such huge losses are due to Uber pouring cash into new services. This includes food delivery, autonomous car technology and its aggressive expansion of ride-hailing services in other countries to fight local competition in various markets.
Uber Eats, a food delivery service is also only available in a few countries (not in Pakistan) and still Uber invests heavily in it despite the not so good response. Moreover, Uber has also acquired Jump, an electric bike hailing service, in an attempt to fight congestion and provide a more environmentally friendly mode of transport.
We had another great quarter, continuing to grow at an impressive rate for a business of our scale. Going forward, we’re deliberately investing in the future of our platform: big bets like Uber Eats; congestion and environmentally friendly modes of transport like Express Pool, e-bikes and scooters; emerging businesses like Freight; and high-potential markets in the Middle East and India where we are cementing our leadership position.
Uber’s current CEO Dara Khosrowshahi is widely known for spending more than necessary and focusing on growth rather than increasing profits.
Uber reportedly spends anywhere between $125 million and $200 million on its self driving car projects, which also ran into some problems a while back.