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http://www.marketwatch.com/story/uber-has-been-operating-with-heavy-losses-gawker-reports-2015-08-05

With fast growth comes big losses.

Ride-hailing company Uber had accumulated unaudited net losses of more than $160 million for the first half of 2014, according to online publication Gawker, which cited internal documents that it said it had obtained. But these losses are hardly surprising for a startup which has been expanding globally and recently raised close to $1 billion at a $51 billion valuation.

"When you see companies raising these quantities of money and growing this fast, it goes without saying that they're not profitable," said Max Wolff, chief economist at Manhattan Venture Partners.

Uber responded later Wednesday with a similar reaction.

"Shock, horror, Uber makes a loss. This is hardly news, and old news at that. It's a case of business 101: you raise money, you invest money, you grow (hopefully), you make a profit and that generates a return for investors," an Uber spokeperson said in a statement.

The startup is widely expected to go public in the short-term.

Gawker published a snapshot of the documents showing that Uber had unaudited net losses of $56.5 million in 2013. They also showed Uber had unaudited revenue of $104 million in 2013, followed by about $103 million for the first half of 2014.

Many startups operate at a loss due to the need to grow quickly. But Uber has added costs due to its decision to expand across the globe, the need to fund lobbying efforts against ride-hailing regulation, and the costs of bringing on drivers and promoting the service to riders, among others.

"I think these losses are what people should expect when you're in a really tough business, which they are," Wolff said.

Uber is currently operating in 58 countries and 323 cities worldwide. It is aggressively growing in China, in particular, and has pledged to spend $1 billion there in 2015.

Uber also faces a number of regulatory battles. It recently squared off against New York City and was granted the right to continue operating and growing there for the time-being.

At the same time, Uber has been expanding into meal delivery, bike couriers and car leasing.

Uber has told investors it expects revenue of $2 billion this year, The Wall Street Journal reported.
 

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"Uber responded later Wednesday with a similar reaction.

“Shock, horror, Uber makes a loss. This is hardly news, and old news at that. It’s a case of business 101: you raise money, you invest money, you grow (hopefully), you make a profit and that generates a return for investors,” an Uber spokeperson said in a statement.
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What a grownup, serious response. Are these guys really just cartoon characters? Does someone come to their house everyday to draw them on an easel?

Insult lifted from Employee of the Month :)
 

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"I think these losses are what people should expect when you're in a really tough business, which they are," Wolff said.
They take a large percentage of fares without owning any cars, holding any medallions, or doing any driving. That sounds real tough.

If they want it to be easier, they should figure out how to get less drivers to quit so they don't have to spend all that money on recruiting new drivers.
 

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Ok, so let me get this right. In 2015 they are losing 470 million on 415 million in revenue, but they are growing at 300 percent. So, in 10 years they will have 47 billion in losses and 41.5 billion in revenue. Sounds good when can I buy in./sarc
 

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So far the only expenses t they have covered for Houston drivers is the TNC permit ($11.01) and the fees to PU at airports.

I am sending Uber a cashier's check for $11.01 b/c that was my expense, not Uber's.

STAY OUT OF MY BUSINESS, TRAVIS!
 

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This is a standard practice before going public.
I once thought they would rush to an IPO, but have changed my mind. Here are some reasons

1) It doesn't seem as if private capital is drying up as yet so a one-off IPOD windfall can wait.

2) I haven't heard if UBER has successfully replaced the CFO who went AWOL. Uber are forced to open their books to the market regulators prior to an IPO. That may cause some embarrassment.

3) Travis is greedy, ambitious and a high stakes gambler. Continuing to stake a game that he sees grow to a 100 billion valuation would appeal to his nature. Hasn't been done before so quickly, he'd be convinced he could do it.

4) he is unsure about China, it's size could double UBER's valuation. But even he is concerned about the "optics" of him leading the charge there. He may hoping his Chinese office can hoodwink the authorities that they are a Chinese company

5) once IPO completes, shareholders want a decent return. Appointing a new board of transport based directors, in the hope of turning the losses down and profits up.
 

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If I were TK my one and only goal would be a $50 billion sale pre IPO.
In its current incarnation as a company which spends more time in court than the boardroom, Uber can't currently go public.
And now with the Gawker document leak, it's also clear their valuation is crap.
 
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