Pummeled by scandal, Uber hit with $4.46B in losses during 2017

Gladys Abbott
February 18, 2018

Adjusted net revenue last quarter increased 61 per cent to $2.22 billion from the same period in 2016. The firm, based in Japan, has bet that more people will decide to book rides through Uber's app rather than drive themselves and the business would find a way to recover from the losses of today.

Last week, Uber agreed to pay $245 million-worth of its own shares to Google's sister self-driving vehicle company Waymo to settle a legal dispute over trade secrets, allowing Uber's chief executive to move past one of the company's most bruising public controversies.

It also agreed not to utilize any of Waymo's technology for autonomous driving as part of the settlement. But The Wall Street Journal, which reviewed the company's figures, reported Uber increased sales by at least 10 percent every quarter in 2017. The San Francisco-based group's gross bookings also climbed 14 percent to $11.1 billion in the quarter. Uber still lost a lot of money, just not as much as it did previously.

Google and Uber were friendly rivals in the driverless-car industry, which is expected to grow to billions of dollars a year. This attitude is clearly visible in the previous business practices and approaches adopted by the ride-hailing company since its introduction in the United States and other potential markets.

The settlement and its improving finances suggest that it is making an effort to achieve its goal for an initial public offering (IPO) in 2019.

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Khosrowshahi has to completely change the culture of Uber, and he wants to make the company profitable before it goes public.

It was a hard year for the San Francisco-based firm. The Uber - Waymo lawsuit is one of those scandals the company got embroiled in due to Kalanick's contentious behavior.

After only five months on the job, Dara Khosrowshahi, Uber's new CEO, gave a frank assessment of his tenure that has largely been spent cleaning up after his predecessor, Uber founder Travis Kalanick.

A company spokesman said: "We're incredibly encouraged by our financial performance and excited by our long-term potential to serve riders, drivers and cities".

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