Uber, that provides taxi service via the internet, declared that it lost $2.8 billion in 2016. There have been rumors about the loss of company in 2016, but there was no official explanation. After a string of corporate crises, Uber is taking the unusual step of releasing financials to highlight its business growth.
Despite the press release about loss of money, Uber‘s gross bookings for 2016 hit $20 billion, more than doubling from the prior year. Its net revenue was $6.5 billion for the year after drivers took their cut. But, Uber says that rapid growth has caused a cost. According to some analysts Uber’s spending on its experimental cars and the price struggle with its rival Lyft are the main reason of this loss. Uber had sold its China business to its rival Didi Chuxing in August 2016 by saying they lost $1 billion in China.
A spokesman of Uber stated that the company continued to increase sales at a fast clip in the second half of the year while keeping losses constant. The net income earned from travel charges continues to increase.
Uber is not required to publicly report its finances like any private company. Such financial disclosure are seen as an attempt to boost confidence in the business among employees, investors and the general public after a series of public relations crises. The company has had many other crises in 2016. A former employee made public allegations of sexism and harassment at the company. The crises continue with a viral boycott of Uber in last January. Social media users urged customers to delete Uber application after the company was perceived as breaking up a strike of taxi drivers who were protesting President Trump’s travel ban.
Ways for saving money in this unstable economy
Nowadays, most of the investors think that the stock market is unreliable, the economic recovery seems to last long and central banks can’t do much more to accelerate growth. Namely, making money is really hard and tricky these days. Even, saving money is really difficult in this unstable economy.
Most of the investors make predictions for market Armageddon. But, it is not the place where you can get rich quickly nowadays. If you try Wall Street, be prepared for lousy stock and bond returns. That doesn’t mean you’ll lose money, but don’t expect to take the usual 7% to 8% return on stocks and 3.6% on bonds. How to move in this tricky environment? What you will win depends on how much risk you will take. Investors have three main options in this hard environment. Despite the fact that it doesn’t sound exciting, staying put is one of the wisely decisions in such a risky era. It is the time to check your portfolio and make sure you actually have the right diversification. Second choice is thinking internationally. If you can take a little more risk, you can look overseas. Although there are lots of political, economic and financial crisis in the world, there are also lots of opportunities in these crisis. Stocks in Europe and emerging markets are cheaper comparing to U.S. stocks. There’s more upside potential. Reducing your fees is the last proposal. Most of the companies use this tactic all the time. If they aren’t growing, they focus on cutting costs. That keeps their “bottom line” about the same. Investors can play a similar game by being rigorous about reducing fees. Saving money on fees can really add up. Specialists working on making recommendations on how to reduce your fees, say people tend to reduce their fees by about 85% in such times.
If you choose to stay far away from unreliable markets and decide to save some money for the worst days seen coming sooner, best thing to start will be determining your current savings. Then, decide for the most trustworthy and profitable (if possible) method to increase your money. Define your daily spending and try to retrench them as much as you can. Leaving the unnecessary spending will be profitable for you in the future.