Leaked documents show just how much money Uber is burning on its global expansion
Travel disrupting startup Uber has been on a collision course with conventional taxi services across the world for years however leaked documents prove that the ride-hailing app is still has a large chasm to cross before reaching profitability.
Documents acquired by Gawker, which recently faced an editorial revolt after a story was pulled from the site, show that the $50bn valued company is enduring heavy loses as it looks to secure itself as the go-to travel app internationally.
The data reveals that Uber took a $3.5m loss at the end of 2013 and a $108m loss at the close of 2014 as it looked especially to settle in China despite fierce competition from rival Kuaidi Dache.
During the same period operating profit grew from $1.4m to $57m with investors patiently awaiting the point where expenditure settles and revenue booms.
Uber responded to the leak to Re/Code: “Shock, horror, Uber makes a loss. This is hardly news and old news at that.
“It’s the case of business 101: you raise money, you invest money, you grow (hopefully), you make a profit and that generates a return for investors.”
The loses will not be an immediate worry for the firm - it sits on a war kitty worth over $1bn.