Uber has logged another entertain of record-breaking losses, losing $1.5 billion in the third entertain of 2017. For comparison, Uber lost $2.8 billion in all of 2016 and lost $1.1 billion in the second entertain of 2017.
The worsening financial picture is not a surprise. Founder and ex-CEO Travis Kalanick quiescent in June, leaving the company leaderless for much of the third quarter. Uber’s authorised battle with Waymo has not been going good for Uber, and Uber is confronting up to 3 sovereign investigations into the company’s practices.
Uber’s money-losing business continues to grow, with sum bookings rising from $8.7 billion in the second entertain to $9.7 billion in the third quarter.
Uber had $6.6 billion in cash on palm at the start of the third quarter, which means Uber can continue losing income at this rate for about another year. Uber’s new CEO, Dara Khosrowshahi, is going to need to possibly figure out how to condense Uber’s waste or else lift a lot some-more money.
An easy way to cut waste would be to lift fares, but that could cost Uber hard-won marketplace share to rivals such as Lyft.
Uber could also diminish investigate projects like its self-driving cars and drifting cars. But there’s no sign that the company is doing that so far. Uber recently sealed a understanding to buy 24,000 cars from Volvo for around $1 billion. The first cars are due to be delivered in 2019.
A third option would be to continue lifting money. Uber has lifted some-more than $11 billion, according to Crunchbase. Uber is negotiating with Softbank to lift at slightest another billion dollars in a understanding that could value the company at $48 billion. But that would be down significantly from the $68 billion gratefulness investors gave it two years ago.