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Uber’s Q3 losses mount to $800m

Revenue continues to grow despite exit from China.

By CBR Staff Writer

Uber has reportedly posted losses to the tune of over $800m for the third quarter of this year, excluding its earnings in China.

The losses came despite the company continued to witness a growth in its revenue.

Overall, Uber lost significantly more than $2.2bn in the first nine months of 2016, reported Bloomberg.

However, the company saw its revenue growing despite its exit from the world’s most populous country China.

For the first nine months of this year, Uber generated net revenue of $3.76bn and remain on track to generate over $5.5bn for the whole year, according to the person.

The San Francisco-based company remained “mum” about its financial performance even though its valuations surged to $69bn.

Its bookings stood at $5.4bn in the July-September quarter compared to $5bn in the second quarter and $3.8bn in the first three months of this year.

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The company’s decision to pull out of China is seen as one of the reasons behind the slowdown in the company’s bookings growth.

In August, Uber entered into an agreement with Didi Chuxing to leave China in return for a 17.5% stake in the Chinese firm. The deal saw Didi investing $1bn in Uber.

Uber’s net revenue grew to $1.7bn in the third quarter from $1.1bn in the second quarter and $960m in the first.

The company, which is said to have incurred losses of at least $2bn last year, is estimated to see at least $3bn in losses this year.

It is also continues to face losses in its home market, the US.

In the UK in September Uber deployed a fleet of vehicles to map UK streets in order to build a database of optimum pick up and set down locations. The project started in London.

Uber lost $100m in the US in the second quarter after earning a slight profit in the first quarter of 2016.

uber-kooziesEarlier this month, Uber was reported to be looking to accelerate self-driving car development with the acquisition of Geometric Intelligence, a New York-based start-up.

The acquisition was expected to see Uber gain 15 specialist researchers who will form the backbone of the new Uber AI labs

It was a new division formed by the ride-hailing service and set to be work on a range of projects from self-driving software to predictive analytics.

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