Uber is having a bad 2017. Between mass boycotts, an embarrassing video of CEO Travis Kalanick being a jerk, and a lawsuit with Google, the ride-sharing company can’t seem to catch a break. Even if the company didn’t have to deal with bad press, there’s still the matter of their yearly billion-dollar losses.
Yet some good news might be on the horizon for the troubled tech startup. Earlier today, Uber announced that they were losing less money than before. This tidbit might signal a potential path to profitability and the inevitable initial public offering. It also proves that the company is far away from selling their stock on the public market.
Uber lost $708 million this quarter.
Many startups lose money on the way to profitability. In Uber’s case, their losses stem from rapidly expanding while figuring out how to become a profitable company. The loss of $708 million in a quarter when they made $3.4 billion in revenue (or 18% more compared to the previous quarter) means they’re still figuring out the kinks. These are expensive kinks to figure out, but compare this loss of $708 million to the previous quarter’s loss of $991 million. This $283 million difference might signal a turnaround in the company’s losses, along with smaller losses or potential gains to follow.
Uber is still kind of a mess.
Despite the decreased losses, the company is losing executives. Gautam Gupta, Uber’s head of finance, is the latest of several executives to flee the company since February. Gupta left on his own accord for another startup, something other top-level Uber execs are doing in droves due to the company’s notoriously bad culture. The loss of executives like Gupta and the recent firing of self-driving car engineer Anthony Levandowski proves something is wrong with Uber’s working environment and it needs to be improved rather quickly…or else.
Uber isn’t going public any time soon.
Uber desperately wants to become a publicly traded stock. If they were to launch an IPO now or any time this year, they would likely tank. The company has yet to turn a profit and yet to show they’re capable of turning a profit. Their self-driving car division will bring them closer to profitability, but those cars don’t really work and total automation is years away. They also need a well-working executive team to stick around and help run the company, and you know how well that’s going. Uber might launch a stock someday, but not any time soon.
Can I invest in Uber?
Uber isn’t a publicly traded company yet. They don’t have a stock listed on any market. Unless you’re a venture capitalist, you can’t actually invest in the company. If you really want to see the company succeed, your best bet right now is to keep using Uber.