One of the most emulated companies in the tech industry, Uber is an online transportation network company that has its headquarters in San Francisco. This company develops and markets an application that allows end users to request a ride and the driver closest to their proximity will accept the ride. This ride hailing giant has completely revolutionized the transport industry all around the world and has managed to cement its position in the market.
However Uber has recently been on the receiving end of the media’s constant scrutiny for a variety of reasons. This constant scrutiny has led to a mass exodus of departures from the transport company as most of the executives are leaving the company due to the Media’s portrayal of the transport giant. There has been a series of allegations against Uber including sexual harassment, customer privacy and their treatment of drivers. If that’s not enough according to multiple sources Uber is doing everything in their power to operate in areas that are restricted by Government officials.
But what really sparked the fury of the media, was the viral video which showed Uber chief Travis Kalanick furiously arguing with an Uber driver over the fare price. This was the final nail that Uber managed to hammer in its coffin as people from all around the world were incredulous on how an Uber chief would treat a driver in such a degrading manner. Uber has also been accused of using an array of psychological tricks to entice drivers to work longer hours; this technique was first instilled into their business module by the Taxi App Company and according to the New York Times Uber is now trying to adopt this strategy. This further exonerates the fact that Uber drivers are being exploited all around the world and Uber is taking marginal steps to fix its troubled relationship with their drivers.
How does Uber respond to all of this negative publicity? Well by sharing details of their flourishing finances. According to their reports Uber has a total sum of bookings of $20 Billion out of which Uber stated $6.5 Billion as the GAAP income. Last year Uber mislaid 5% extra and had lost $991 million and by the end of the year this amount totaled to $943 million. These figures do not even represent a bulk of Uber’s expenses including property investments, employee compensation and other variable expenses.
However, Bloomberg has recently announced that Uber is enjoying a 28% percent rise in bookings which has helped accumulate a staggering $2.9 Billion net revenue by the end of this year, this figure is stronger then compared to the financials of the prior three months. Although these losses are of huge numbers, Ubers delta between revenue growth and booking fares will help stabilize these finances. Another factor that should be considered is that Uber is spreading like wild fire; they are growing at an alarmingly fast rate and have managed to start operating in all across the globe. The underlining reason why Uber is facing such losses is the taint of scandal swirling around this company, which is driving away investors. But even though Uber is currently in a predicament, they are still making staggering profits and there is no doubt that they will become the leading transport service once again.