Uber reportedly lost over $1 billion during the first six months of 2016.
A new report from Bloomberg’s Eric Newcomer claims that the ride-hailing company lost $520 million in the first quarter of the year. The second quarter of the year saw Uber lose $750 million. These figures are before “interest, taxes, depreciation and amortization.”
Based on losses during the first and second quarter of 2016, the company lost $1.27 billion during the first six months of the year. This happened despite the company posting profits in the U.S. during its first quarter.The information came from sources close to the matter. They claim it was reported by Uber head of finance Gautam Gupta in conference calls with investors.
While an Uber spokesperson refused to comment on the matter, insider sources told Bloomberg that Gupta attributed the majority of the losses to subsidies for its drivers. The company is currently valued at $69 billion. It has $8 billion on-hand and another $1 billion coming in. The company also has the options of a $2 billion credit line and a $1.2 billion loan.
The reported losses to Uber come as the ride-hailing service works to expand its area of operation and fend of rivals, such as Lyft. The company is also investing in self-driving technology. A recent agreement with Volvo will have its drivers supervising self-driving SUVs in Pittsburgh. It’s also working with the company to help develop self-driving vehicles. This could reduce costs as it wouldn’t need drivers in the future.
Uber also switched up its app’s interface to hide surcharges from customers
. Now those looking for a ride only see how much the total trip will cost. This is a change from before, when users could see the exact increase in price.
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