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Uber second-quarter loss shrinks to $645 mn as ride bookings grow

Some investors have eyed Uber's $68 billion valuation with scepticism

Reuters  |  San Francisco 

Uber
The rate of growth suggests Uber's business has persevered despite a recent string of scandals

Technologies Inc reported on Wednesday that its losses narrowed in the second quarter by 9 percent and ride bookings rose, but the company is still a long way from being profitable.

said its net loss was $645 million, down from $708 million in the first quarter and $991 million in the fourth quarter of last year. The steady shrinking of losses signals Uber's efforts to reign in massive spending to subsidise rates for both drivers and customers and other competitive tactics as it battles rivals in tough like South Asia.

Last year, San Francisco-based lost about $3 billion.

As a private company, is not required to publicly disclose its finances, but it started the practice earlier this year as it eyes an initial public offering in the near future.

The rate of growth suggests Uber's business has persevered despite a recent string of scandals, but it is still losing a historic sum of money and its executives have declined to offer a timetable for profitability.

Some have eyed Uber's $68 billion valuation with scepticism, and recently four mutual fund marked down the value of their shares by as much as 15 percent.

The company said its gross ride bookings for the second quarter reached $8.7 billion, up from $7.5 billion in the first quarter. The number of global trips on the app increased 150 percent over the previous year, with growth strongest in developing

Those numbers include trips in Russia, where recently merged its operations with local rival Yandex.

Adjusted net ticked up to $1.75 billion from $1.5 billion in the first quarter, said.

Since 2010, has raised more than $15 billion from investors, which has allowed it to operate at a loss. The company said it has $6.6 billion in the bank, down from around $7.2 billion in the first quarter.

site Axios first reported Uber's second-quarter results.

First Published: Thu, August 24 2017. 04:39 IST
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