Uber which is one of the most prominent tech startups in the US yesterday revealed their second quarter’s performance and as per the quarter’s report company has recorded 1.07 billion dollars of loss. As per the report, this quarter too company failed to stop its losses, and more surprisingly this time company’s net loss crossed 1 billion dollars compared to previous quarters 891 million dollars. This report further indicates that the company’s sales slightly increased by 5 percent as compared to the last quarter, but that’s not enough as company is still in loss. From this recent performance of the company, one can say the company is trying very hard to maintain its losses at a low level but failing to do that continuously.
Uber has already decided to go public because they want to generate funds to run and expand the company and one of the best ways through which most of the startups achieve that goal is by taking their company public. Even if the company is reporting losses from the previous couple of quarters wall street, on the other hand, seems to be very positive about the company’s IPO and future growth. Because according to the many wall street experts this company is going to be valued at more than 120 billion dollars at its IPO. Uber is currently valued at 70 billion dollars at the private market which indicates that the private investors still believes in this company’s future growth and success.
According to the recent earnings report, Uber’s subsidiary company Ubereats performed very well, and it booked $2 billions worth of total services in the last quarter. Uber is trying to expand their business globally, and that’s the reason they have invested a tremendous amount of money in India and the middle east, and after the next year’s IPO the company will be able to expand their services into more countries. On the hand Uber’s CEO, Dara Khosrowshahi said that even if the company is right now in losses, we still can offer a significant number of quality services to the public at a substantial level.