Uber Steadily Recovering; Losses Narrows to $645 Million

Ex-GE CEO Immelt Could Be Heading To Silicon Valley To Run Uber Report Says

Uber is still a growing business despite its leadership strife

Uber Technologies Inc reported on Wednesday that its losses narrowed in the second quarter by 9 percent and ride bookings rose, but the company is still a long way from being profitable.

The revenue gain was driven by the number of global trips taken, climbing 150 percent over the past year, with the 250 percent in emerging markets leading growth, followed by a 90 percent increase in developed markets.

Uber has been working to improve its relationships with drivers and riders after being hit with controversies that led to the resignation of founder and chief executive Travis Kalanick.

Since his departure, Kalanick has attempted to retain three board seats he controls, all while Benchmark sues him for fraud.

Investors will gloss over those losses, though, as most other key metrics are moving in a positive direction.

Four mutual funds this week marked down their stakes in Uber by as much as 15 percent in a sign that months of scandal were taking a toll on the private company's value of some $68 billion, according to a report in the Wall Street Journal.

It means the most talked-about company in Silicon Valley has been apparently unscathed by the unprecedented series of scandals that have engulfed the company in 2017.

Several Uber investors have told us that the current consensus is Uber is now worth less than its last privately assigned valuation - a reflection, perhaps, of what brokers on the secondary market are seeing.

Removing Kalanick from the board was necessary "to ensure Uber is protected from Mr. Kalanick's corrosive influence and can promptly obtain the new leadership it needs to move forward", Benchmark's court filing said, referring to Uber's search for a new CEO. The group has been taking steps to fend off rivals and rehabilitate the company's image.

Meanwhile, Uber drivers have earned $50 million in tips since a gratuity option was added to the ride-sharing application in June.

Among Uber's biggest costs: India, Southeast Asia, discounts for passengers and bonuses for drivers, insurance payments, employee salaries and self-driving auto research. However, this has not affected Uber's business. The company said it has $6.6 billion in the bank, down from around $7.2 billion in the first quarter.

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.

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