Uber's business continues to grow amid recent turmoil

Pablo Tucker
August 24, 2017

Gross bookings - which represent the amount customers pay for rides on Uber, not what the company actually earns on them - were up 17% in the second quarter from the first quarter, according to a new report in Axios. The number of global trips on its service increased 150 percent over the previous year, with growth strongest in developing markets.

Uber's boost came thanks to an increasing user base and a broader array of services.

According to Uber, its adjusted net loss fell nearly nine per cent quarter-over-quarter to US$645 million and over 14 per cent year-over-year.

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

Uber has been under a microscope after a series of scandals that led to the departure of Travis Kalanick as chief executive. Uber agreed to merge with local player Yandex in July. The company reported $6.6 billion cash on hand, down from $7.1 billion at the last reporting period.

It's a sign that Uber is still looking for avenues to raise funds and improve its balance sheet as investors grow tired of the turmoil within the company.

Uber also saw a big jump in the number of trips riders took.

The company lost about $645m in the second quarter of the year, down 14% from the same period in 2016, according to figures given to the website Axios.

Ride-hailing service Uber Technologies Inc generated $6.5 billion in revenue a year ago and its gross bookings doubled to $20 billion, the company said on Friday.

Among Uber's biggest costs: India, Southeast Asia, discounts for passengers and bonuses for drivers, insurance payments, employee salaries and self-driving vehicle research.

Yandex, the "Google of Russia", and Uber have agreed to merge their ride-sharing businesses in Russian Federation and five neighboring markets with Yandex as leading partner, .

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