Following an embarrassing revelation from about a weak ago that Uber concealed a massive cyberattack - in which hackers stole personal data from 57 million customers for more than a year - and paid the hackers $100,000 to keep quiet (not to mention the plethora of other scandals of late), investors in the private company have rightfully balked at providing the $7-$10 billion worth of new equity it apparently needs to keep the doors open.
Therefore, it's probably not helpful, at least for Uber management, that the company just reported another quarter of massive losses totaling some $1.5 billion. Here's more from the Financial Times:
Uber's adjusted third-quarter losses widened to $743m, up 14 per cent from the previous quarter, on a measure that excludes interest, tax and share-based compensation, the documents revealed.
Including those items brings Uber's net losses to $1.5bn for the quarter, according to generally accepted accounting principles.
As Uber faces legal challenges around the world, including a high-profile lawsuit from Waymo, closer to home, its litigation efforts have become increasingly costly. The company also spends heavily on marketing and discounts for its transportation service, particularly in competitive markets such as India and the US.
Net revenues rose to $2bn in the third quarter, up 14 per cent from the previous quarter, with gross bookings of $9.7bn.
Of course, as we noted yesterday, SoftBank shocked some Uber investors when they offered to buy shares in a new round of financing, but only at a 30% discount to their previous valuation of $69 billlion. Meanwhile, even at that "bargain" price, General Atlantic and DST dropped out of the original investor consortium citing "growing risks" with the San Fran darling.