The ride sharing service UBER is spending more money than any tech company ever. Bloomberg Reported that UBER has already lost $1.2 Billion in the last two quarters well exceeding any losses ever reported from silicon valley. Although its revenue was well over a billion dollars last year they seem to be spending too much money to incentivise people to use the service. The losses stem from their payroll and the massive number of drivers spending $2.7 Billion last year. Before this year the largest loss was reported by Amazon in 2000 with a loss of $1.4 Billion.
How can UBER be losing this much money and still have a strong valuation you might ask? Well, they own over 80% market share. This market share has landed them a valuation of over $6 Billion in this growing competitive market. The mindset of grow first and make money later is nothing new. Twitter and Instagram have yet to turn a profit while Amazon posted their first profits in 2015.
UBER is looking to the future however. Their plan from the beginning was always clear. Driver-less cars will remove overhead and they could be seeing massive returns once they fully implement this plan. They recently announced that they are going to roll out the first fleet of driver-less cars in Pittsburgh by the end of this month.