Uber has reduced its losses by nearly half and orders have increased 51% over last year, said ride-hailing service provider on Wednesday, showing that months of scandals and withdrawals from the foreign market have not slowed down its sales and operations.
Uber Technologies Inc. also announced an extraordinary profit of $2.5 Billion, mainly through the sale of its business units in Russia and Southeast Asia, which reflects Uber’s international activities.
The overall improvement in the company’s finances that was imitated in Uber’s Q1 results appears after a year of controversy over an accusation of lawsuits against officials and drivers, sexual harassment, theft of secrets commercial, federal investigations, and data leaks.
The results reflected the full Q2 under the leadership of Dara Khosrowshahi, who came in the place of founder and former CEO Travis Kalanick in 2017. Khosrowshahi intends to make Uber a public company in a coming year and must reduce its losses, hire a CFO after a three-year vacancy, and prove that Uber can be profitable.
Also on Wednesday, Uber announced that it would proceed with a secondary sale of shares for existing investors and executives, who would value the company at $62,000 Million from $48,000 Million valuations that were commissioned in a secondary sale at the end of last year. Current Investors of Uber, TPG, Altimeter Capital, and Coatue Management, a new investor, will acquire up to $600 Million in shares at $40 per share.
“The transaction is expected to launch by next week and must be finalized until the end of June,” said Uber.
At the end of March, Uber had close to $6,300 million in cash, thanks in part to a $1.25 billion direct investment from SoftBank and others.
On the other side, the Silicon Valley-based, ride hailing service provider had terminated its self-driving car operations in Arizona, and will continue to test its vehicles in Pittsburgh, California, and Pennsylvania.