Uber’s payouts greater than its profits
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.
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