Uber, one of the fastest global companies nowadays, just shocked financial experts with their profit and loss statements. The financial information they have shown investors last Friday showed that in the last three months of 2015, the top carpooling company lost $991 million.
Losing almost a billion dollars in just three months is not a joke. And according to Buzzfeed News, it isn't because of a financial crisis or a failed business merger—Uber simply is having some very bad days and spends more money than they take in.
Even though their financial information is a cause for alarm, Uber focuses on the bright side and constantly tells their investors that their revenue is growing much faster than their losses so they have nothing to worry about. Their gross bookings increased 28 percent from their previous quarter in the last three months of 2016, as reported by Bloomberg.
Rachel Holt, an Uber spokesperson, said in a statement: "We're fortunate to have a healthy and growing business, giving us the room to make the changes we know are needed on management and accountability, our culture and organization, and our relationship with drivers."
And even though Uber's business growth is rising nonstop, they are still currently facing lots of crises that seems to keep Uber's CEO constantly over the edge. Apparently, the work culture of the company is "toxic" and tons of top executives are being investigated for sexual harassment claims. Their self-driving car plans are also in danger of being put on permanent halt because of a lawsuit filed by Alphabet Inc.'s Waymo. In response, Uber CEO Travis Kalanick is currently looking for a capable chief operating officer to help them "grow up".
Business experts have a lot to say toward Uber's financial situation. A finance professor at New York University, Aswath Damodaran, commented that Uber is a "cash-burning machine" and is a "one-of-a-kind company in good ways and in bad."