Uber Lost $1.2 Billion in First Half of the Year

Uber may have great ambitions for self-driving cars, but its losses so far this year have been almost as big. The ride-hailing service lost around $1.2 billion during the first half of 2016, reports Bloomberg.

The announcement comes after Uber had turned a profit in the U.S. during the first quarter. Still, the seven-year-old company had lost a total of $520 million globally during that time period. In the second quarter, Uber’s losses jumped to more than $750 million, including a $100 million loss it suffered in the U.S. Experts say these losses are just about unprecedented. Even Amazon.com, which was known for chasing market value while losing money, recorded a loss no bigger than $1.4 billion for 2000.

Fortunately, Uber may see less extreme losses in the future now that it has sold off its unprofitable Chinese business to another ride-sharing company called Didi. As part of the deal, Didi took over Uber’s business in China, invested $1 billion in Uber’s global operations, and gave away an almost 20-percent share in the combined business formed from the collaboration between the two companies. Prior to the deal, Uber had lost at least $2 billion in China.

In the company’s entire history, Uber has lost at the very least $4 billion. Last year alone, Uber lost a total of $2 billion.

While Uber has parted ways with quite a lot of money, it has reportedly amassed tremendous market share. Uber told investors on a call that it believes the company holds between 84 and 87 percent of the U.S. market. Meanwhile, Lyft has said its market share is more than 20 percent in certain key markets in the U.S., and it serves fewer areas than Uber.

Uber is looking toward the future, partnering with automakers like Toyota and Volvo to help grow the ride sharing market. It will also begin offering rides in self-driving cars in Pittsburgh, Pa., this year.

Source: Bloomberg

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