Uber loses $2.8 billion in 2016, nets $6.5bn

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Uber Technologies Inc, a transportation network company headquartered in San Francisco, California, United States with operation in over 500 cities worldwide recorded a profit loss of about $2.8 billion in 2016, excluding the China business it sold midway through the year.

According to its financial figures released recently, Uber’s gross bookings for 2016 hit $20 billion, more than doubling the 2015 records, and its net revenue, after drivers took their cut, totaled $6.5 billion for the year.

Uber’s CEO had previously said it was losing $1 billion a year in China, prior to selling its China business to rival Didi Chuxing in August.

The loss is a hefty sum by any standard. But on a quarterly basis, the company continued to grow sales at a fast clip in the second half of the year while keeping losses constant.

“We’re fortunate to have a healthy and growing business, giving us the room to make the changes we know are needed on management and accountability, our culture and organization, and our relationship with drivers,” Rachel Holt, Uber’s regional general manager for U.S. and Canada, said in a statement.

Uber, like any private company, is not required to publicly report its finances.

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The selective financial disclosure may be an attempt to boost confidence in the business among employees, investors and the general public after a series of public relations crises.

Uber is currently conducting an “urgent” investigation in response to a former employee who made public allegations of sexism and harassment at the company.

That came on the heels of a viral boycott of Uber in January.

Social media users urged customers to #DeleteUber after the company was perceived as breaking up a strike of taxi drivers who were protesting President Trump’s travel ban.

 

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