Ridesharing

Uber Secures $2.8B In Q2 Revenue

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Uber revealed that its second-quarter revenue increased 63 percent from the prior year to $2.8 billion, while gross bookings jumped 41 percent to about $12 billion.

According to The Wall Street Journal, while the company narrowed its loss to $891 million in the second quarter from $1.1 billion a year ago, the loss was bigger than the $550 million loss it reported in the first quarter of this year. But a company spokesman pointed out that Uber has been spending more money on new businesses such as food delivery and scooters.

Chief Executive Dara Khosrowshahi said in a statement that Uber will continue to invest in future areas of growth, including “high-potential markets in the Middle East and India.”

In addition, the CEO plans to take Uber public in the second half of 2019. Investors have valued Uber at around $70 billion, making it the highest-valued private technology company in the world.

But Uber does have some obstacles ahead. Earlier this month, New York City implemented a cap that would limit the ridesharing vehicle count on the roads, ostensibly to combat an industry that some feel has grown too far, too fast, which has led to poor environmental conditions (i.e., traffic and exhaust fumes) and low wages for drivers.

Uber, Lyft and Via Transportation tried to stop the move with an offer to set up a $100 million fund to help New York City’s taxi medallion owners. The proposal would have the companies contribute $20 million per year into a “hardship fund,” which would be used to bail out taxi drivers who bought into the old system at great cost, but are unlikely to recoup their investment. However, council members rejected the deal.

In addition, Uber’s rivals are gaining ground. Lyft recently raised $600 million, doubling its valuation from last year to $15.1 billion.

“Lyft’s strong momentum has continued in the first half of 2018, with our recently launched new passenger app, an environmental commitment to make all Lyft rides carbon neutral, and our partnership with Magna to develop and scale autonomous vehicle technology,” the company wrote in a press release.

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