Pixel Envy

Written by Nick Heer.

Uber Lost $4.5 Billion in 2017

Eric Newcomer, Bloomberg:

Adjusted net revenue last quarter increased 61 percent to $2.22 billion from the same period in 2016. Meanwhile, the total value of fares grew to $11 billion that quarter. It was the first full quarter under Dara Khosrowshahi, who took over the troubled business in September.

Despite a turbulent year for the ride-hailing company, sales were $7.5 billion. But the company also posted a substantial loss of $4.5 billion. There are few historical precedents for the scale of its loss.

In 2016, Pixel Envy earned $3 billion more than Uber, and I’m thrilled to report that the delta between me and Uber for 2017 was 50% greater.

A reminder that no taxi company could survive losses like those Uber has been posting; also, that the reason a fare with an Uber driver is cheaper is because it’s subsidized at below-market rates by venture capital firms; and that, despite some benefits for gig economy workers in the new tax code, Uber is among many gig-type companies that does not provide health coverage for their American drivers.