Uber lose billions as second quarter figures revealed
Uber have revealed that they have lost billions after their second quarterly figures were published by the tech giant.
Uber posted a $5.24bn loss, which represents the largest quarterly loss in the company's history.
The losses have been accrued after Uber paid nearly $4bn in expenses and stock based compensation during that quarter. They also paid out just under $300m to drivers relating to its IPO.
The Star Tribune reported that the figure equates to a loss of $4.72 per share which included the compensation and driver related costs. Uber have been haemorrhaging money in its quest to expand its customer base. Marketing, promotions and sales have all had an adverse impact on its revenue stream.
Although the company's revenue has increased to $3.17bn its expenses grew by 71% compared to the previous year, this is in part due to competing against other app-based rivals. As a result, Uber's ability to become a profitable entity has been seriously impinged.
According to Uber CEO Dara Khosrowshahi the company may continue to lose money at a slower rate over the next two years.
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