Uber Did Better In the Second Quarter despite All the Drama, But Still Needs to Get Its Act Together Soon
Regardless of the unlimited series of scandals and an ongoing management unexpected result, Uber appears to be relatively financially healthy and in fact they did better in the second quarter compared to the first quarter. Because of this they still proved that the business is still growing.
Uber is a private type company. This means that they are not required to release their financial statements publicly. Nevertheless, earlier this year, the company begins to release information about its performance, which is continuously improving in the middle of an extensive list of problems they are facing.
Uber Bookings Revenue Grow in Second quarter
The gross revenue of Uber Booking increased in 17 percent from $8.7 billion in the first quarter. The net revenue of the company, after paying its driver also increased from $1.5 billion for the first quarter to $1.75 billion for the second quarter. For the meantime, compared to the second quarter of 2016, the global ride request increased by 150 percent
However, Uber declared an adjusted net loss amounting $645 million for the quarter, but still it is a large amount even it is has an improvement from the $750 million loss that was booked in the first quarter.
As the Uber’s revenue grows, it shows that the transportation from unlicensed taxi service business is still going strong. The scale of company’s quarterly losses is unmatched among Silicon Valley. Additionally, investors have become troubled as Uber executives have not yet presented timetable if when will be the company start gaining again its profits.
Uber Issues that is still unsolved
Since the year started, Uber faced a lot of issues including data privacy audits that has been mandated by the FTC, because Uber did not protect the personal or private information of their customers, a legal battle against the Google Unit Waymo, due to over self-driving technology and the difficulty of finding for the new CEO. According to the news, the next Uber CEO will be facing a lot of problems.
Here are the problems that the new Uber CEO might face:
- Lack of Senior Executives
- Google Unit Waymo Suit
- The Uber is going broke
- The relationship of Uber to their drivers
Despite of all the problems being faced by the Uber right now, they were able to post increased revenue and bookings for the second quarter and it seems that most of the Uber users don’t care about the this issue and there are still passengers who pretend not to notice these kind of issues, because they think that the company provides services that bring convenience to every them. But still this is not the right time for the company to take break.
Yes, it is true that Uber did a great job in the second quarter, but if they want to maintain this kind improvement, they must face and solved all their problems that they are encountering right now and they should start searching for the right leader that will lead them.