Tech company reports over $1.4 billion in losses

folarin okunola

August 25, 2016 7:42 PM

On a more positive note, booking grew exponentially from the first quarter of 2016 to the second from above $3.8 billion to over $5 billion.

Uber CEO, Travis Kalanick

Tech company Uber has reported net losses totalling $1.27 billion for the first half of the 2016 operating year, according to media reports.

According to a Bloomberg report, Gautam Gupta, Uber's head of finance, shared the information at an earnings call last week Friday.

Gupta said Uber lost about $620 million before deductions on interest, taxes, depreciation and amortization in the first quarter of the year.

The tech company had it worse in the second quarter. Uber's loss exceeded $750 million including a massive $100 million shortfall in the US.

ALSO READ: Tech company to launch driverless cars in the US this year

Gupta also said that the majority of the company's losses came largely from subsidies for Uber drivers.

Net revenue also grew, under generally accepted accounting principles, increased about 18 per cent - from $960 million in the first quarter to about $1.1 billion in the second.

Back in 2015, the tech company had lost at least $2 billion before taxes and the rest. In the company's four year history, Uber has lost at least $4 billion.

Uber is currently valued at $69 billion and recently announced that it will be launching a feet of self driving cars in Pennsylvania, US later this year.

folarin okunola