Full-year net loss of Uber has expanded to USD4.5 billion last year, as it went through fierce year with several scandals, a lawsuit alleging the theft of trade secrets and the replacement of its CEO.
The results also showed that Uber cut its fourth-quarter net loss by 25 per cent from the third quarter as new boss Dara Khosrowshahi moves to make the company profitable ahead of a planned initial public stock offering sometime next year. Over the entire 2017, Uber lost $4.5 billion, whereas it was "only" about $2.8 billion in the red a year earlier, though 2016 isn't considered an optimal reference point for evaluating its long-term performance because the majority of its losses incurred over that year was amortized by the sale of its China business to local rival Didi Chuxing.
In a sign that the negative publicity surrounding its problems alienated many consumers, Uber's share of the ride-hailing market in the USA fell from 82 percent at the start of past year to 70 percent in the fourth quarter. Khosrowshahi said today at Goldman's tech conference.
Uber CEO Dara Khosrowshahi, whose company just stared down that same question late past year as it negotiated a high-stakes deal with the $100 billion fund, gave voice to that intellectual exercise today as he offered an overview of his business to Goldman Sachs clients and investors.More news: PyeongChang 2018: Huge fight occurs between US, Canada women's hockey teams
"It fits into this larger vision, we think, that there can be multiple modes of transportation that can be made available through the Uber app", he said. 'If you draw that out further, a year from now, this could be a significant IPO waiting to happen, ' he said. The most recent loss by Uber is based upon generally accepted accounting principles that includes write downs, and the enormous number of legal expenses, like the cost of defending itself against a lawsuit over trade secrets brought by Waymo a subsidiary of Alphabet Inc. But it started releasing certain information past year.
As part of the cleanup, Uber last week agreed to pay $245 million to settle the trade secrets case brought by Waymo, the company spawned by a self-driving vehicle project started by Google.
A person briefed on the results provided some numbers and confirmed the accuracy of The Information's story to The Associated Press on Wednesday.
Khosrowshahi wants the company to go public next year, according to a November 9, 2017, CNN report.