Uber Said to have Lost $1.27 Billion Within Six Months

Multi-million-dollar driving establishment, Uber reportedly lost the whooping sum of $1.27 billion just within the first half of the year according to reports from Bloomberg.
$1.27billion is considered a lot of money for an establishment to lose.  Although when you consider their position as the most valuable startup in the globe, losing such an amount may not be considered as a big deal for Uber which was recently valued at $62.5billion.

Bloomberg insists that the majority of Uber’s losses was from the extraordinary subsidies the company offers to its drivers. Most of the drivers at uber operate within China, where Uber was caught up in a costly competition with a China's ride-hail app, Didi Chuxing.

Uber and it’s number one competitor, Lyft, have been able to continue their business because they have fully competent drivers. Drivers who are ready to go anywhere riders are. Other ride-hail driving companies try to buy customer loyalty by allowing them enjoy more than the usual 75–80 percent per fare. Uber and Lyft spend a lot of money on promotions and marketing things like fare discounts and many other juicy giveaways. Despite their efforts however, riders will tend to prefer the cheapest option.

Uber finally accepted it’s fate that it was never going to outwit Didi, and as such cut its losses selling off its Chinese operations over to Chinese competitor, Didi.
The good thing about this sellout is that Uber will not record any losses related China on the balance sheet following August 31st.

Spokesperson for Lyft made a statement some days ago: "Uber's shares present wrong statistics because they offer various services in more industries than Lyft does. Our own shares within the main US regions, where majority rides are made, is about 20 percent and it grows from time to time. Our fantastic track record should is as a result of the diligence and perseverance of our entire team. Our team strive daily to treat riders better and develop programs like the in-app tipping that helps drivers feel happier.