Uber may appear to be strengthening its position in the market, but it’s losing quite a bit of money.
According to a Bloomberg report, the ride-hailing company lost at least $1.27 billion in the first half of 2016. In the total seven years of its history, Uber has lost at least $4 billion. Since the company is not publicly traded, exact financial records aren’t released but information comes from shareholders who receive a conference call to hear details on the company’s performance from Uber’s head of finance, Gautam Gupta.
In the first quarter of this year, Uber lost about $520 million before interest, taxes, depreciation and amortization, an unnamed source told Bloomberg. It lost even more money in the second quarter, with the tally reaching $750 million. Gupta told investors that subsidies for Uber’s drivers are responsible for the majority of the company’s losses worldwide.
Net revenue increased to about $1.1 billion in the second quarter, compared to $960 million in the first. The company told investors it will be changing how it calculates UberPool’s contribution to revenue in the second quarter, which had the effect of increasing revenue.
The company’s losses are expected to fall however, now that it has cut a deal in China with Didi Chuxing. In the past two years, Uber has been fighting with the other ride-hailing giant and it is believed Uber has lost around $2 billion over two years in China. In July, the two companies came to an agreement with Didi giving Uber a 17.5 percent stake in its business and a $1 billion investment into Uber Global in exchange for Uber leaving China.