Uber's loss jumped 61 pc to $four.5 billion in 2017


Uber's loss jumped 61 pc to $four.5 billion in 2017

When Dara Khosrowshahi was announced as the replacement for ousted Uber CEO Travis Kalanick, he looked set to inherit a company in major turmoil.

Uber managed to grow its business in the last quarter, despite a few bumps in the road. Despite the turbulent 12 months, the sales revenue reached 7.5 billion United States dollars.

Despite the eye-popping figures, Uber is making headway on slowing the bleeding. But the company also posted a substantial loss of $4.5bn.

In his appearance, Khosrowshahi said Uber could quickly reverse its losses by retreating from less-developed markets outside the USA and reducing the money it pours into expensive projects like its work on self-driving cars. Uber's gross bookings rose 14 percent to $11.1 billion in the fourth quarter compared with the previous quarter. That's an improvement over the $1.46 billion loss recorded in the previous quarter (with revenue of $9.7 billion), but Uber still hasn't attained profitability.

Uber disclosed its quarterly results less than a week after it settled a trade secrets lawsuit with Waymo, the self-driving auto unit of Google's parent company, Alphabet.

Adjusted net revenue last quarter increased 61 per cent to $2.22 billion from the same period in 2016.

In a sign that the negative publicity surrounding its problems alienated many consumers, Uber's share of the ride-hailing market in the USA fell from 82 percent at the start of a year ago to 70 percent in the fourth quarter.

Mr Khosrowshahi, who was previously chief executive of Expedia, has increased financial discipline, hired a chief operating officer to cut costs and sold Uber's lossmaking car-leasing business.

The investment served as a part of the firm's plan to reform its board structure, as it prepares to go public next year. In addition, the company last month disclosed that it had suffered a massive data breach affecting 57 million users. Uber agreed to pay $245 million worth of its own shares to Alphabet's Waymo self-driving vehicle unit to settle the legal dispute.