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Uber grows in spite of scandals, but keeps bleeding cash

Uber grows in spite of scandals, but keeps bleeding cash

According to an April report in The Information - published even before former CEO Uber Kalanick was asked to resign - investors were looking to buy Uber stock, and shareholders willing to sell it, at a $50 billion valuation, though it isn't clear that Uber green-lighted any of those transactions.

Uber trimmed its losses 14 percent in the second quarter from a year ago, as the ride-hailing giant grew bookings, trips and revenue. Globally, in all of its markets, trips are up 150% on this time a year ago.

The revenue gain was driven by the number of global trips taken, climbing 150 percent over the past year, with the 250 percent in emerging markets leading growth, followed by a 90 percent increase in developed markets.

Following Uber's scandal-ridden year, four mutual fund firms have chose to trim their investments in the company, suggesting that months of controversies were affecting its $68 billion value and that Uber really needs to solve its myriad of problems.

Benchmark filed its suit earlier this month, alleging that Kalanick in 2016 misled Uber into approving three new seats on the company's board of directors and granting him appointment powers.

Few companies have faced so many scandals in such a short amount of time as Uber.

It's a sign that Uber is still looking for avenues to raise funds and improve its balance sheet as investors grow tired of the turmoil within the company.

An executive committee is steering Uber as it searches for a CEO.

Meanwhile, Uber has found a way to keep its business healthy. Revenue for the first quarter was $1.5 billion, according to website Axios, which obtained Uber's financials.

Presuming Uber's revenue reaches $8 billion this year and it loses well over $1 billion, the company faces significant competition from quarters as diverse as Lyft to traditional auto manufacturers. This number excludes China, where Uber past year ceded the market to Chinese ride-hailing giant Didi Chuxing, but it includes Russia, Axios noted. In the fourth quarter of 2016, the company's net loss was recorded at $708 million.

The positive results come amid a largely turbulent year for Uber.


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