Huge Losses Reported By Uber As It Files To Go Public

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As Uber filed to go public in New York, the taxi app has revealed that it continues to be heavily making losses despite its significant expansion an growth into new businesses.

The documents that were filed with the Securities and Exchange Commission, the US regulator, reveal that it made a small profit in 2018, however, this was because of the sale of businesses in Asia.

It made an operational loss amounting to $3 billion. It also disclosed that has lost $7.9bn dollars in total since the company was founded.

Despite diversification, it said that its core business, providing car transportation to customers who can summon cabs using an app, still makes nearly most all of its money, with income amounting to $9.2 billion last year, an increase from the $3.5 billion that was reported in 2016. Its total revenue amounted to $11.2 billion.

Last year, its customers travelled 26 billion miles using the app.

It said that its rapid expansion into cities across the globe and new areas of business had led it to take on more losses.

Uber is now anticipated to begin its roadshow for investors, with an actual flotation expected early next month.

The app-based taxi firm was founded in San Francisco in 2009. It is the second so-called “ride-hailing” company to go public this year following Lyft, which was created three years later.

It has drawn in controversy and has been barred to either temporarily or permanently from various cities, including London, where it was granted a short-term licence last June.

Uber has since expanded into various transportation and logistics markets, such as food delivery with Uber Eats, logistics with Uber Freight,  and bike and scooter sharing, after it acquired Jump, a start-up, in April last year.

Its chief executive officer, Dara Khosrowshahi, admitted that there had been “missteps” that were caused by “our willingness to take risks that others might not, and that famous Uber hustle.”

Uber has much more widespread operations as compared to its younger rival, which is mostly restricted to the United States. Lyft claims to have a 39pc market share in the USA.

Neither firm is profitable, with Lyft losing $911 million on nearly $2.2 billion in revenue in 2018.