Uber Continues to Grow, Despite Scandals
Bookings are up, and losses are down, according to Uber’s second-quarter results.
Despite a seemingly never-ending series of scandals and an ongoing management shakeup, Uber appears to be relatively financially healthy. The company accumulated $8.7 billion in gross bookings in the second quarter of 2017, according to financial results first reported by Axios.
That's a 17 percent increase over the first quarter, and a 102 percent increase year-over-year. While Uber still lost $645 million, that represents a 14 percent decrease over the $708 million lost in the first quarter.
The results come as Uber searches for a new CEO to replace Travis Kalanick, who was ousted in the fallout from an investigation into the ride-sharing giant's corporate culture. Benchmark, one of Uber's main investors, is now suing Kalanick, accusing him of putting his own interests before the company's while CEO. Kalanick still holds a seat on Uber's board, and it is believed that Benchmark is looking to block him from engineering a return to the CEO position.
Meanwhile, Uber has found a way to keep its business healthy. The company recently raised booking fees in the United States and Canada by 15 cents to 50 cents per ride, depending on location, reports Bloomberg. That adds $1.50 to $3.00 in revenue per ride, according to Bloomberg—and that money that goes directly to Uber rather than to drivers.
Higher fees and scandals don't seem to be deterring riders, either. Uber also reported a 150 percent year-over-year increase in trips globally. As long as people keep flocking to Uber, the company may be able to weather the bad publicity and internal chaos that have dogged it so far.