Uber narrows loss to US$645 mil, boosts revenue amid turmoil


As Uber searches for a new CEO, the company provided a look into its financial performance indicating it saw a substantial increase in its gross bookings in the second quarter of the year. Adjusted net losses also fell 9 percent to $645 million, a sign that margins are improving. The steady shrinking of losses signals Uber's efforts to rein in massive spending to subsidize rates for both drivers and customers and other competitive tactics as it battles rivals in tough markets like South Asia. For all of 2016, Uber lost about $3 billion.

The continued growth in ridership suggests Uber's core business has so far weathered a string of scandals. Multiple mutual funds backing Uber recently marked down the value of their stock by as much as 15%.

Global trips popped 150 percent from a year ago, while gross bookings hit $8.7 billion, up 17 percent sequentially and double the bookings in the year-ago period. Uber agreed to merge with local player Yandex in July. The company had $6.6 billion on hand at the end of the quarter, down from $7.1 billion at the end of the first quarter.

Since 2010, Uber has raised more than $15 billion from investors, allowing it to operate at a significant loss. Uber had $US6.6 billion in cash at the end of the second quarter, down from $US7.2 billion at the end of the first quarter. Internet media startup Axios first reported this quarter's financials Wednesday.

"There's clearly growth in the numbers reported by Uber here", Dawson said, but they should be taken "with a big pinch of salt".

The growth number excludes China, which Uber exited last summer in exchange for an equity stake in Didi Chuxing, a Chinese car-hailing service company. A blog post written by a former employee touched off an investigation into its workplace culture that resulted in numerous firings and Travis Kalanick's resignation from his post as Uber's CEO.

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