Uber is reportedly operating at a loss of close to half a billion dollars, according to a bond prospectus viewed by Bloomberg.
The Bloomberg report showed $US470 million in operating losses with $US415 million in revenue, but the report said it was not clear whether the numbers were the results of one quarter, a full year, or some other time period. Nor does it say when the financial numbers are from.
An Uber spokesperson told Bloomberg that the financial results cited were “substantially old numbers that do not reflect business activities today.”
If they are old numbers, it is unclear why the company would be reportedly using them in a bond term sheet. An Uber spokesperson declined to comment to Bloomberg on the topic. We’ve also reached out to Uber for additional comment.
Last week, the Wall Street Journal reported that the ride-hailing app was raising new funding from Chinese investment management firm Hillhouse Capital Group. It was rumoured the amount could be as high as $US1 billion, though another source told WSJ the final investment is likely to be “hundreds of millions of dollars.”
The investment with Hillhouse could be a sign Uber is thinking of an IPO soon.
The Chinese investment firm was rumoured to be purchasing bonds that will later convert into shares at a discount to Uber’s IPO price. The Wall Street Journal pointed out that the deal with Hillhouse incentivised Uber to IPO soon because the bonds rise in value the longer Uber waits to go public.