Uber’s pay­outs greater than its prof­its

CityPress - - Business -

An as­ton­ish­ing time­line track­ing Uber law­suits shows that the taxi-hail­ing com­pany has been or­dered to pay out $161.9 mil­lion (R2.3 bil­lion) since 2009.

Uber, which at its lat­est val­u­a­tion of $62.5 bil­lion – based on its last cap­i­tal rais­ing – has paid out many le­gal set­tle­ments around the world since it was founded in 2009.

How­ever, the com­pany re­mains mas­sively un­prof­itable, and it is ex­tra­or­di­nary that its losses are greater than its rev­enue.

Its losses to­talled $671.4 mil­lion in 2014 be­fore ex­pand­ing to $987.2 mil­lion in the first half of 2015.

Uber’s net rev­enue came in at $663.2 mil­lion in the first half of 2015, com­pared with $495.3 mil­lion in the whole of 2014.

The com­pany’s strat­egy of dis­rupt­ing tra­di­tional taxi busi­nesses, along with var­i­ous political and leg­isla­tive hur­dles, have forced it to pay out at least $62 mil­lion since it launched.

It also faces more than 170 law­suits in the US alone.

SET­TLED LAW­SUITS

1Set­tle­ment with driver part­ners: $100m Uber agreed this month to some con­ces­sions, in­clud­ing al­low­ing the for­ma­tion of driv­ers’ as­so­ci­a­tions that are in some ways sim­i­lar to a union. The pro­posed set­tle­ment for up to $100 mil­lion al­lows Uber to con­tinue to treat its driv­ers as in­de­pen­dent con­trac­tors in­stead of em­ploy­ees. Class ac­tion safety com­plaint: $28.5m

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