Uber lost at least $1.27 billion in the first half of 2016, according to Bloomberg’s Eric Newcomer, who cites people familiar with the matter.
Bloomberg reports that Uber held a conference call with investors Friday, led by finance head Gautam Gupta, to discuss Uber’s financial situation.
In the first quarter of 2016, Uber lost $520 million (“before interest, taxes, depreciation and amortization”). In the second quarter, the situation worsened, and Uber’s losses topped $750 million. That means Uber’s total losses are at least $1.27 billion for the first half of the year.
While these losses are staggering, they are mostly consistent with previous reports. Uber lost close to $1 billion in the first half of 2015.
The losses may stem from a variety of sources, including driver subsidies, Bloomberg reports.
But a person familiar with the matter told Business Insider that the lion’s share of Uber’s losses stemmed from the company’s expensive and protracted battle with Didi Chuxing in China, where the company was losing $1 billion a year trying to beat its local rival. Uber China merged with Didi earlier this month in a $35 billion deal, so Uber won’t see those losses on its books moving forward, the person said.
Uber has also been sparring with Lyft here in the US, with both companies offering low prices and subsidies to entice riders. Lyft, which operates in the US only, posted an operating loss of $360 million in 2015. Uber and Lyft have both ramped up spending on driver and rider incentives, the person said.
In April, Uber claimed it had reached profitability in the US and Canada. Bloomberg reported at the time that Uber’s profit per ride in the US was at $0.19. This isn’t the case anymore, according to Bloomberg, which says Gupta told investors that Uber lost money in the US in Q2.
Uber’s revenue grew 18% from the first quarter to the second quarter, or from about $960 million to about $1.1 billion, Bloomberg reports. During the same period in 2015, Uber’s net revenue grew from $287.3 million to $375.9 million.