Leaked Documents Suggests Uber Is 'Losing Millions'

New submitter DaneTerry88 points out an article about the financial state of Uber, poster child for the sharing economy. Documents leaked to Gawker seem to indicate the company is still far from profitable, despite its popularity. "They show operating losses of more than $100m (£65m) in the second quarter of 2014, albeit coupled with steady growth in revenue." Uber did not deny the leak, but pointed out they are still building the business, which requires a lot of investment. The company has been valued as high as $50 billion, and only a few days ago received a $100 million investment from Microsoft.

Comments

Re:How does growth help?

[aaron4801]

Government lobbyists and lawyers.
According to the Post, local lobbying registration records indicate the company hired private lobbyists in at least 50 US cities and states and has hired at least 161 people to lobby for its interests. In Sacramento alone, Uber spent $475,000 over five months to influence California lawmakers, the Post reports.
And that was nearly a year ago. Promoting and defending their disruptive business model against entrenched interests requires a lot of legal help.