Uber : the profitability is still far away, but the losses are getting smaller

Less loss, more revenue, despite the turmoil that led to his boss and founder to resign, Uber will be better off even if it is still far from being cost-effective. The startup has more valued in the world – about $ 70 billion – announced Wednesday a reduction of its loss of 9% in the second quarter, and an increase in bookings.

+150% of races a year

The company cars booking with a driver, has reported a net loss of 645 million compared to $ 708 million in the first quarter and 991 million in the fourth quarter of 2016. A year earlier, the loss was three billion dollars. The adjusted revenue rose to $ 1.75 billion against $ 1.5 billion in the first quarter. In may, the group officially announced a loss of $ 2.8 billion and a turnover of $ 6.5 billion for the full year of 2016. For the first quarter of 2017, it was a loss of $ 708 million.

The number of races in the world grew by 150% year on year, achieving a total turnover of “gross” of $ 8.7 billion, two times more than a year ago, says the site, Axios has revealed the first information. Drivers for Uber have also received $ 50 million in gratuities since the group introduced at the end of June, the opportunity for clients to give a fee to drivers in some countries, still writes Axios.

Uber, which is not quoted in the stock Exchange, does not provide complete results, but expressed at regular intervals of certain financial performance, which makes it however difficult to compare from one year to the other. This recession, with progressive loss attests, however, efforts to Uber to curb spending lourdes committed to do in the face of fierce competition, in particular in south Asia.

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A valuation queries

The valuation of Uber, of $ 68 billion, makes some investors skeptical and four mutual fund have recently rebate the value of their trading stock Uber of no more than 15%.

Boss iconic, but controversial, Travis Kalanick was forced to resign in June under pressure from investors anxious to burnish the group’s image, tarnished by scandals, amid accusations of sexual harassment or theft of technologies. The hostilities have soared this month, with the complaint of an investor of the group, the funds Benchmark Capital Partners, which accuses the ex-CEO of maneuver to the board of directors to return. Travis Kalanick responded by accusing the fund of waging a campaign “unworthy” intended to remove permanently from the group.

The group still has no CEO and struggling to find one in the midst of all these controversies. Very many names have been put forward by the press, including the ex-boss of General Electric, Jeff Immelt.

(with Reuters and AFP)

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