Belfast Telegraph

Big losses for tax-hailing app Uber after US price war and expansion

Taxi-hailing app Uber has reportedly racked up losses of more than 2.2 billion US dollars (£1.8 billion) in the first nine months of 2016 despite seeing a jump in bookings and revenues.

The San-Francisco based group is said to have sunk into the red by more than 800 million US dollars (£649 million) in the third quarter as it has been hit by a price war with rival Lyft in America and spending on ambitious growth plans.

The figures, first reported by technology news site The Information, suggest Uber is on track for full-year losses of 3 billion US dollars (£2.4 billion) this year.

But the leaked financials are understood to show net revenue climbing to around 3.8 billion US dollars (£3.1 billion) in the first nine months and is set to reach more than 5.5 billion US dollars (£4.5 billion) over the full year.

Bookings - the total fares paid by passengers - reportedly rose to 5.4 billion US dollars (£4.4 billion) in the third quarter, up from 5 billion US dollars (£4.1 billion) in the previous three months and 3.8 billion US dollars (£3.1 billion) in the first quarter.

Net revenues - the amount of money Uber makes after it pays its drivers - is understood to have risen 54% quarter-on-quarter to 1.7 billion US dollars (£1.4 billion) in the three months to the end of September.

The group has ramped up spending on new technology and other initiatives, including its controversial self-driving car service and Uber Eats food delivery.

It recently pulled out of China to focus on other markets.

Uber is worth more than 69 billion US dollars (£56 billion) - more than fellow US tech giant Twitter.

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