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Nairaland Forum / Nairaland / General / Travel / Uber Loses $708 Million In The First Quarter Of 2017 (21014 Views)
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Re: Uber Loses $708 Million In The First Quarter Of 2017 by omoadeleye(m): 4:10pm On Jun 02, 2017 |
Uber can sign me, i have knowledge about all this |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by PapaBrowne(m): 4:10pm On Jun 02, 2017 |
Uber needs to find additional monetization models to add to the percentage charge on drivers. Uber lost a whopping $3billion last year. Something surely isn't right with its financial model. All it runs is a platform, Human Resources and maybe investment in new tech! So where is all that money going! Not good. Uber shouldn't pack up and send us back to the days of yellow cabs abeg! I know Taxi drivers can't wait! |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by NewGombawa: 4:13pm On Jun 02, 2017 |
Uber Technologies Inc. is a transportation network company headquartered in San Francisco, California, United States. Operating in 570 cities worldwide. It develops, markets and operates the Uber car transportation and food delivery also. |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by uchwar1: 4:13pm On Jun 02, 2017 |
nonut:OK. u try |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by Leez(m): 4:18pm On Jun 02, 2017 |
pmc01: |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by Oildichotomy(m): 4:19pm On Jun 02, 2017 |
pmc01:It is a silicon Valley's mindset. They think Long term about profits which is actually the way to go! The losses will naturally go down as revenue and expansion increases going forward. 1 Like |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by ttmacoy: 4:21pm On Jun 02, 2017 |
Growing and expanding the business into new countries and products e.g. they just started Uber Eats, some service for pets and Uber trucks etc. Most start ups make a loss for a few years as they reinvest in the business to grow it. Same with Google, Facebook, Amazon etc. The important thing is the cash generation and growth of the company in preparation for going public in a few years time. The bigger the company the better the valuation they can get when they go public. ephi321: 1 Like |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by ttmacoy: 4:24pm On Jun 02, 2017 |
The loss is for Uber Globally not just Nigeria. haba how can they lose $708m in Nigeria alone? Willie2015: 1 Like |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by ephi321(f): 4:25pm On Jun 02, 2017 |
ttmacoy: Right, the expansion bit makes sense. I know startups do struggle in the early years but Uber does not purchase/own the cars used by their drivers so besides salaries and commissions, I still find it hard to understand why they lost that much money. 2 Likes |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by Meritocracy: 4:25pm On Jun 02, 2017 |
pmc01:Company can record loss if they newly make huge investment which have not started yielding profit but healthy base on forecast returns on those investments. |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by ttmacoy: 4:29pm On Jun 02, 2017 |
Given it's a private company it's hard to say for certain the biggest expense headers on their financial results, but my guess would be money spent fighting competition will hit the P&L, expanding into new countries, lobbying governments, fighting attacks from traditional taxi companies etc. will play a part. Investment in new products and market will be a big cost as well e.g. I know Uber is investing in research for driverless car and truck technology etc. As I said just a guess, we wouldn't know for sure till they start releasing more information before IPO. Good thing is revenues are rising and losses reducing steadily so looks good. ephi321: 1 Like |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by ephi321(f): 4:39pm On Jun 02, 2017 |
ttmacoy: I actually remember reading they were in a running battle with London black cabs, not sure what the outcome was. Research is also not cheap. So yes, that makes sense. Thanks. |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by gozzynes(m): 4:48pm On Jun 02, 2017 |
Positive outllok despite poor results, they are still declaring that they would move into profitability |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by ttmacoy: 4:48pm On Jun 02, 2017 |
You're welcome. I saw an article where the head of Finance claims the below: Bloomberg’s sources say that Uber Head of Finance Gautam Gupta pointed at driver subsidies as the source of the majority of the loss, but did not go into detail. https://www.pddnet.com/news/2016/08/uber-reports-loss-drivers-are-biggest-expense ephi321: |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by adegeye38(m): 4:51pm On Jun 02, 2017 |
Arian11:guy, uber is in very active in loads of countries, so d Nigerian factor is nt even up to 10 percent of d losses m sure |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by ephi321(f): 4:57pm On Jun 02, 2017 |
ttmacoy: Just read it, and one other thing mentioned which made sense and explains the big loss is promotion prices to attract customers, all those discounts have to come from somewhere. Learnt something today. Thanks for that. |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by baba4thegehs: 4:57pm On Jun 02, 2017 |
May be. But I would not believe Uber Ng will make loss. They practically rip drivers off here. |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by linearity: 5:15pm On Jun 02, 2017 |
pmc01: Most company 'lost' are just accounting gimmicks to evade the tax man. More so, lost merely means; you spent more than your revenue, and if the company is expanding, plus doing lots of R & D, it is typical for them to spend a lot and Uber is in involved in all that. They made $3.2b for the period under review, and you will agreed that is a healthy company, plus Uber have a lean operating expenses, since it is the driver and their AI app that does the heaving lifting. Once they take care of the expense side, a big chunk of those revenues will be pure profit. Uber has been testing lots of self-driving AI cars in multiple US cities recently, so they are spending big on R & D. If Uber floats an IPO, am buying in, it is a futuristic company and here to stay. 1 Like |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by Nobody: 5:27pm On Jun 02, 2017 |
but wait o does uber have any key investment? they dont own cars so they shouldnt be experiencing much loss. |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by tolajay: 5:50pm On Jun 02, 2017 |
Is there a spotlight on Africa/Nigeria's contribution to the loss? 1 Like |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by AdeOlum: 5:57pm On Jun 02, 2017 |
ephi321: marketing, paying drivers incentives to join, subsidizing fares for riders, hiring and maintaining staff (over 6,000 employees worldwide), and expanding into new markets. Considering how many competitors they have, and how well funded their competitors are, Uber's loss seems to be even modest, to say the least. |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by AdeOlum: 5:58pm On Jun 02, 2017 |
pmc01: Their top line revenue and market share is growing... at a pretty fast rate |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by DollarAngel(m): 6:07pm On Jun 02, 2017 |
Arian11: Get a job or go learn a skill, instead of spending the whole day on NL, Bless 1 Like |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by Arian11(m): 6:08pm On Jun 02, 2017 |
im sure i earn more than you while interning but hey..who's arguing DollarAngel: |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by AdeOlum: 6:15pm On Jun 02, 2017 |
Lilimax: Nigeria contributes to 1 percent or even less than one percent of Uber's revenue. The market is still very small and nascent for a company of Uber's size. They'd be running at a deep loss here in Nigeria... for now |
Re: Uber Loses $708 Million In The First Quarter Of 2017 by DollarAngel(m): 6:18pm On Jun 02, 2017 |
Arian11: Then if that's the case no problem, was just advising a brother 1 Like |
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