Uber lost $708 million in the first three months of this year, a company spokesperson told Business Insider. The ride-sharing company also stated that its head of finance Gautam Gupta is leaving to join another startup, the details of which are not known.
Uber pleased with the numbers
According to CNBC, the company narrowed its losses compared to the loss of $991 million reported in the previous quarter. Revenue increased by 18% on a sequential basis to $3.4 billion.
“The narrowing of our losses in the first quarter puts us on a good trajectory towards profitability,” Uber said in a statement to CNBC.
Michele Ragazzi's Giano Capital returned 1.9% for March, taking the fund's year-to-date performance to 1.7%. Since its inception, Ragazzi's flagship fund has produced a compound annual return of 7.8%. According to a copy of the €10 million fund's March update, a copy of which ValueWalk has been able to review, Giano's most significant investment at Read More
Even though the company posted a loss, it is pleased with its revenue growth and 9% increase in gross bookings. Further, the company said that business development in international markets was also a positive contribution in the quarter.
“These results demonstrate that our business remains healthy and resilient as we focus on improving our culture, management and relationship with driver,” a company spokesperson said.
At the end of the quarter, the ride-sharing service was left with $7.2 billion in cash in hand despite an aggressive rate of cash burn.
Uber, the most valuable private tech firm in the world, has started disclosing its results only recently, which is a rare step. The company has not talked about holding an initial public offering, but investors have time and again raised concerns (although privately) that CEO Travis Kalanick is not the right person to lead it through an IPO, notes the Financial Times.
Gautam Gupta quits
Since February, about a dozen top executives have left the ride-sharing service, with the most recent departure being finance head Gautam Gupta. In an email to staff seen by the Financial Times, Gupta said that the company would start searching for a CFO to lead the finance team after his exit, and the role will be important in shaping the future of the company. Only recently, the company was questioned for its bookkeeping and pricing practices when it announced a refund of tens of millions of dollars to drivers in New York because of a calculation error.
In an email statement sent to CNBC, Travis Kalanick stated that Gautam Gupta is a world class financial talent, and during the past four years, he built Uber from an idea into the business it is today.
A couple of months ago, Uber President Jeff Jones also stepped down amid all the controversies. The company also fired technology whiz Anthony Levandowski after he failed to hand over documents he was ordered to turn in by the court in the high-profile legal case involving Alphabet’s Waymo.
A tough year so far for Travis Kalanick
So far, it has not been a good year for Uber, as it grapples with the string of executive departures. The company is looking to appoint a new COO to strengthen its executive team after several questions have been raised about its work environment, including women reporting unfavorable working conditions, notes Forbes.
The ride-sharing service is also fighting the lawsuit involving Levandowski and brought by Waymo over the alleged theft of its self-driving trade secret thefts. A criminal investigation by the United States government is also underway; it involves the use of a software tool that helped the company operate in regions where it was not allowed to.