Startups might be changing the world for a better place, but some of them are still not earning a profit even after in the business for more than ten years. Uber, which is considered as unicorn startup recently recorded more than $5 billion worth of losses in a single quarter which has shocked its investors. However, the main problem does not end here, and this lousy phase might be continued in the future also. Uber released second quarter’s earnings report, which shows that the ride-sharing company has booked a loss of $5.2 billion. Uber has recently gone public, and till date, the company hasn’t brought any good news for its investors.
Lyft, which is another ride-sharing company, also booked losses which are far less than Uber. Lyft, in its second-quarter, managed to record loss of $644 million which is relatively a small number. Both companies have gone to the public and haven’t brought any good results for ordinary investors. People usually invest in startups to see their stocks getting up, but things are not happening at the same expectations here.
Uber managed to increase its revenue by 14 percent to $3.1 billion. Lyft, on the other hand, led to overgrow as compared to Uber because the company’s revenue increased by 72 percent to $864 million. Uber’s CEO Dara Khosrowshahi is still positive about the company, and he thinks they are trying to achieve things at a good pace. Uber might not be earning any profit, but it has captured a significant amount of market according to the company’s executives. Even though Uber is diversifying in other sectors like food delivery, personal mobility, and freight shipping, its still not bringing any profits for the company. General investors are now worried about this ongoing loss, which Uber is continuously making.