Another concern would be if growth plateaus in these markets. They’re the missing context from the revealed financial documents. In other words, what the leaked numbers don’t show you is how Uber is faring in established locations like San Francisco, but we don’t know because those numbers haven’t been leaked. “What really matters is: What’s their profitability in some of their oldest markets? I bet if they would go public they’d talk about their profitability in their lead markets just like OpenTable did and Netflix does.” “Of course they’ll lose money if they’re investing aggressively to build out in China or new markets like Albuquerque,” RBC Capital Markets’ analyst Mark Mahaney said.
YES MONEYMONEY. COM DRIVERS
Uber in particular dumps a lot of cash: It subsidizes rides for passengers and offers huge signing bonuses for new drivers in order to build up both sides of its marketplace. The case of business 101: You raise money, you invest money, you grow (hopefully), you make a profit and that generates a return for investors.” This is hardly news and old news at that. Or, in the words of an Uber rep who spoke to Re/code today: “Shock, horror, Uber makes a loss. Investors are usually fine with it, up to a point. Re/code has independently confirmed the authenticity of today’s numbers, which first appeared on Gawker.Īnd yes: Young private companies routinely spend more than they’re bringing in as they establish their brands and build out new markets. And its losses are likely to keep growing, as it expands further in China, a market it entered in late 2013. That’s no surprise: Another set of leaked numbers, published earlier this year by Bloomberg, showed the company had losses of $470 million on sales of $415 million. Leaked Uber financials from 2012 to 2014 show that the company lost a ton of money during those years.
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