Uber’s Q3 losses rises further even after China exit; on track to cross $5.5 billion revenue target in FY17

Uber, world’s largest ride sharing firm, has reported significant rise in its losses for Q3, even though the revenue saw a jump. The firm recorded net revenue of $3.8 billion during the first 9 months of the financial year with Q3 alone accounting for $1.7 billion of revenues. With the current momentum, it is also on track to achieve $5.5 billion of revenues for the current financial year. However, Uber’s net loss widened to $800 million during Q3 totaling to $2.2 billion for the first 9 months of the financial year. The company is said to have lost at least $2 billion last year and is on track to pile up a loss of at least $3 billion this year.

Uber’s bookings—the total combined value of the fares that riders pay—were $5.4 billion in Q3, an increase from $5 billion in Q2 and $3.8 billion in Q1. The slowdown in Uber’s bookings growth can be attributed to the company’s decision to leave China. On 1st August, Uber said that it came to an agreement with Didi Chuxing to exit China in exchange for 17.5% of the Chinese company. As part of the deal, Didi invested $1 billion in Uber. Uber’s third-quarter financials don’t include the business in China, which were part of the previous quarterly results.