Uber posts dismal Q3 reports with $800M loss

The American worldwide online transportation company, Uber Technologies Inc., recently posted their third quarter reports showing disappointing results. The company lost more than $800 million for its third quarter, not including its Chinese operation. In the last nine months, Uber already lost $2.2 billion.

Last August, Uber and Chinese transportation giant, Didi Chuxing, had an agreement wherein Uber will finally depart the Chinese market, leaving Didi with bigger market in the business in exchange for 17.5% control of Uber over the Chinese company and a $1 billion investment from Didi Chuxing.

The departure of Uber from China contributed on the company’s slow growth for the second half of the year, with a growth rate of its losses reached 25% year over year, also a decline from the 34% year over year report from the second quarter.

However, it was necessary for Uber to leave China, since it has been losing billions, through marketing materials, on its fight against the Chinese company in order to win over the Chinese market, but failed to be successful.

Despite the losses, Uber’s revenue continued to grow even after leaving market in China. According to reports, the company was able to generate around $3.76 billion in net revenue during the first nine months of the year and expected to reach around $5.5 billion by the end of the year.

During the third quarter, Uber’s bookings reached $5.4 billion, which was an increase compared to the $5 billion total value of bookings from the second quarter and $3.8 billion from the first quarter. Then, Uber’s net revenue was at $1.7 billion after the company has paid of its drivers, a growth from the $1.1 billion during the second quarter and $960 million in the first quarter.

Reports released that Uber is expected to further lose more to around $3 billion during 2016, followed by the $2 billion loss from 2015, all of which don’t include interest, taxes, or stock0based compensation.

Presently, Uber spends a great deal on its promotions in order to boost its presence against upcoming competitors such as Lyft. Meanwhile, Alphabet Inc.’s Google has begun a carpool ride-hailing service in the San Francisco area.

On the other hand, Uber takes on GrubHub and Amazon with its Amazon Eats food deliver service. The transportation company has also begun venturing on self-driving cars, thus in competition against Alphabet’s Waymo, General Motors, Tesla Motors, and even Apple.

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