spots for Uber, but it comes at exiting markets like China, after accumulating enormous losses. Their main competi- tor, Didi Chuxing gave Uber 17.5 percent equity in their company and $1 billion in investment if they cease opera- tions in China, which was a great deal for Uber which will see its losses in China disappear from their financials after August. Uber might be getting out of China, but they have no interest in exiting the U.S. market at this time. The company told investors it is willing to spend large to keep its market share in the U.S. Uber claims to own up to 87 percent of the market in the U.S. However Lyft, Uber’s main competitor in the U.S. market, said its market share in major U.S. cities is over 20 percent and growing, as it looks to enter more markets and offer head to head competition with Uber it will capture more of the market share from Uber.
By Jamie Barrie W hat a difference a quarter can make as after reporting profitability in the U.S. this year, the ride-hailing company is announcing second- quarter losses exceeding $100 million. That is correct $100 million and more losses are expected as Uber battle Lyft for market share in the U.S. Uber Technologies Inc. is not a public company, but every three months shareholders get the details on the ride arrangement company’s progress from its head of finance, Gautam Gupta. The details this time around are not good, not good at all as Uber has turned a profit in the U.S. in the first quarter to the company back to losing money across the board. The details show that in
What is known and predicted by industry experts is that Uber will keep losing money for a few more quarters in the U.S. and they have the same outlook for Lyft.
the second quarter, Uber’s losses significantly sur- passes $750 million, and that was with a $125 million profit in the U.S. in the first quarter, putting Uber’s losses in the first half of 2016 to at least $1.27 billion.
Uber’s gains and losses have grown as the com- pany’s global expansion plans have expanded. Track records like this are hard to find. The closest of record belongs to Amazon.com Inc. who made headlines for losing money while increasing its market value. However, there biggest loss was close to $1.4 billion in 2000. Uber broke that record last year and is headed towards doing the same again this year.
The second quarter does have some bright
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SPOTLIGHT ON BUSINESS • SEPTEMBER 2016
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