Uber reports massive losses amid legal troubles & regulatory scrutiny

Growing litigation costs and fierce global competition have widened Uber’s net loss in the third quarter to $ 1.46 billion reports the company. This compares to a loss of $ 1.06 billion in the previous quarter.

At the same time, net revenue went up from $ 1.66 billion to $ 2.01 billion with gross bookings growing to $ 9.71 billion against the $ 8.74 billion in the second quarter.

Following a number of major difficulties, including a massive data breach and revelations about internal spying, the ride-hailing company launched a tender offer to sell its shares.

The SoftBank-led consortium that includes Dragoneer, Sequoia Capital, TPG and Tencent have offered to buy up to $ 8 billion in shares from existing Uber shareholders in a new round of financing. However, the group of potential investors is offering $ 32.96 per share, a third lower than the $ 48.77 paid to the company last year.

The Japanese company is also purchasing a billion dollars of new shares at a higher price, which created a blended valuation for Uber of $ 54 billion, down from $ 68 billion last year, according to a SoftBank spokesperson. The company confirmed that Benchmark Capital and Menlo Ventures intended to sell shares.

Despite significantly knocked down prices, the deal may reportedly become a turning point for the privately held San Francisco firm, as it is getting ready to go public as early as next year.

This year, Uber has to appoint a new chief executive. Under Dara Khosrowshahi, who replaced founder Travis Kalanick, the company’s adjusted third-quarter losses widened to $ 743 million, up 14 percent from the previous quarter.

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RT Business News

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