While on paper Uber may be valued at $69 billion, the ride-sharing service is continuing to rack up huge financial losses and by year’s end, may lose $3 billion.
Bloomberg reports that in the first nine months of 2016, Uber generated approximately $3.76 billion in net revenue and that by the end of the year, revenue may exceed $5.5 billion. In the same time period however, the brand lost over $2.2 billion, more than $800 million of which came in the third quarter.
Last year, it is reported that Uber lost roughly $2 billion but that figure will increase markedly this year despite the company’s exit from the Chinese market.
Uber attempted to launch in China but came up against stiff competition from local ride-sharing company Didi Chuxing, a company which serves 300 million people in the country. After failing to make a significant dent in the market, Uber came to an agreement with Didi Chuxiang to leave the market for a 17.5 per cent stake in the Chinese company. Additionally, Didi invested $1 billion in Uber.
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