Uber Lit $1 Billion on Fire Last Quarter Because That's What Uber Does

Illustration for article titled Uber Lit $1 Billion on Fire Last Quarter Because Thats What Uber Does
Photo: Spencer Platt (Getty)

In its first earnings as a public company, Uber posted losses of $1 billion over the previous quarter, more or less matching investor expectations, because sending the GDP of Vanuatu off a cliff every three months is Uber’s current business model, more or less.

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Uber has, in fact, pretty consistently lost around this amount of money—sometimes a little more, sometimes less, and once, briefly, it was profitable.

In its own assessment of its future, Uber—which loses money on every ride it gives—sees its long-term profitability coming from autonomous vehicles and its near-term solution as even more drastically nickel-and-diming its own drivers. The company’s stock has traded below IPO value since hitting the market nearly three weeks ago, and it’s currently worth approximately $5 billion less than the $72 billion valuation it had before going public.

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In spite of all that, Uber’s stock jump nearly 4 percent in after-hours trading.

Cool.

Senior reporter. Tech + labor /// bgmwrites@gmail.com Keybase: keybase.io/bryangm Securedrop: http://gmg7jl25ony5g7ws.onion/

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DISCUSSION

bkilburn
ArtistAtLarge

Must be nice to lose a billion dollars and still stay in business.

Sorta makes a lie of the old “if your product or service is good enough you should not lose money.”

When did predatory pricing become legal?