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March 3, 2016updated 05 Sep 2016 7:54am

Huge investments see Uber surge towards international expansion

News: The company’s international business lost $237m in 2014.

By CBR Staff Writer

Uber Technologies has invested a large amount of money to expand its ride-hailing service globally, according to a European regulatory filing.

Citing a filing the company made last month with the Dutch Chamber of Commerce, the Wall Street Journal reported that Uber’s international business lost $237m in 2014, compared to the $32m loss it reported in the year earlier.

The statement marks the most recent period for which Uber was required to unveil financial data to authorities in Amsterdam.

The filing applies to only one of the company’s subsidiary, Uber International C.V., and there is no clarity on the extent to which it represents the firm’s entire international business.

The numbers unveil a huge increase in investments made from 2013 to 2014, a period in which Uber advanced its global expansion.

Uber currently has operations in around 400 cities, up from less than 100 at the start of 2014.

In a recent interview with Canadian publication Betakit, Uber CEO Travis Kalanick said his company is losing $1bn per year only in China.

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The company was launched in China in 2013 and is investing heavily to compete with its rival Didi Kuaidi.

A Uber spokeswoman was quoted by the Wall Street Journal saying, "We’re a rapidly growing company that is investing heavily to bring our service to more people in more cities."

Revenue for Uber’s international unit was $68m in 2014, according to the filing.

Revenue for any previous year were not disclosed by the company, and there were no details on the total amount of gross bookings, or fares paid by customers, which was reported to be much higher.

Uber has raised over $10bn in debt and equity as it looks to expand globally.

Earlier this year, the company received around $2bn in funding from several Chinese investors. The US company’s Chinese unit has since been valued at $7bn.

Hainan Airlines parent firm HNA Group, China Taiping Insurance Holdings, China Life Insurance, Guangzhou Automobile Group and CITIC Securities participated in the round.

China Minsheng Banking, real estate developer China Vanke and China Broadband Capital were the other namedinvestors.

LetterOne, an investment firm established by Russian billionaire Mikhail Fridman, has recently invested $200m in Uber.

Indian publishing group Bennett Coleman & Co. and Qatar’s sovereign-wealth fund are the other overseas investors.

 

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