Uber Technologies Inc’s quarterly losses widened to a whopping $1.46 billion in the third quarter, according to people familiar with the matter. It seems the troubles are just unending for the ride-hailing company as it paddles through legal troubles and regulatory scrutiny worldwide.
The San Francisco-based company’s net loss increased to $1.46 billion in the third quarter from $1.06 billion in the previous quarter. Meanwhile, its quarterly net revenue rose 14 percent to $2 billion and gross bookings increased 11.5 percent to $9.7 billion, said the person familiar with the matter.
Uber, the world’s most successful and valuable startup is facing signs of a major breakdown
Uber is a privately-held company and so it does not report its financial results. Earlier this year, it began posting its performance, although it only disclosed certain numbers. The ride-hailing company had to report financials to shareholders as part of a formal bid from a Softbank Group-led consortium looking to buy a large block of stock. SoftBank wrote in an email statement that at least two of Uber’s shareholders are looking to sell their stock. Consequentially, the deal would value at $48 billion, a massive step-down from its $70 billion private valuation.
“SoftBank and Dragoneer have received indications from Benchmark, Menlo Ventures, and other early investors of their intent to sell shares in the tender offer,” the company said in a statement.
Earlier, General Atlantic and Russia’s DST Global dropped out a deal to buy stock. The rest of the bidders in the group are SoftBank, TPG, Dragoneer Investment Group, Tencent Holdings Ltd. And Sequoia Capital, which are looking to buy at least 13.4 percent of outstanding shares.
Uber has seen a rough year, with ousting of its former CEO Travis Kalanick, a flurry of resignation of top management, to a concealed year that exposed personal data of nearly 57 million people. On the other hand, it’s rival Lyft Inc., has been gaining market share as well as customer approval.
The group of investors hope to buy Uber shares at a cheap price, said people familiar with the matter. SoftBank has committed to invest at least another $1 billion in Uber at a higher valuation of $69 billion if the deal goes through.