Uber lost more than $2 billion in the first nine months of the year as it poured money into expanding its taxi-hailing app across the world, leaked details about the company’s financial performance have suggested.
The private company, valued at nearly $70 billion, is believed to have lost $800 million in the third quarter and at least $1.2 billion in the first half.
Uber, the world’s most valuable start-up, does not publish financial results. The details are believed to have emerged from a quarterly conference call hosted by Gautam Gupta, its finance chief, to discuss the company’s performance with shareholders.
The large losses stem from the heavy expenses the company occurs promoting its business and subsidising drivers in new markets.
The company has also invested in self-driving vehicle technology and food delivery services.
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Investors expect Uber to commit to an initial public offering at some point next year. However, the extent of the company’s losses may delay a flotation if they cannot be reduced.
The leaked financial details were first published by The Information, a technology news website.
The loss of at least $800 million in the third quarter excluded results from Uber’s China business, which it sold during the period, as well as tax, interest and share-based compensation. Uber reported a $2.2 billion net profit in the third quarter with these elements taken into consideration.
Uber sold its Chinese business to Didi Chuxing in August this year. Travis Kalanick, chief executive of Uber, said at the time: “Uber and Didi Chuxing are investing billions of dollars in China and both companies have yet to turn a profit there.” As part of the deal, Didi Chuxing invested $1 billion in Uber and Uber took a 17.5 per cent stake in Didi Chuxing.
Turnover at Uber rose to $1.7 billion in the third quarter from $1.1 billion in the three months before, the leaked results showed. Uber’s third quarter revenue of $1.7 billion represented growth of more than 240 per cent compared with the same period last year.
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Uber declined to comment.