Tuesday, December 20, 2016

Uber Loses $800 Million in Third-Quarter

Uber racked up pro-forma losses of more than $800m in the third quarter of this year as a price war with rival ride-hailing service Lyft in the US and heavy spending on new initiatives weighed on its figures, according to a person familiar with its recent financial performance, reports The Financial Times.

The third-quarter figures, first reported by tech news site The Information, show that Uber still faces steep losses even after pulling back from China. After the first quarter of the year the company boasted of hitting a milestone as its operations turned cashflow-positive in developed markets, comprising the US, Canada, Europe, Australia and New Zealand. However, it fell back into cashflow losses after that as the battle with Lyft intensified.

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