Uber Loses $900 Million In Second Quarter; Urged By Investors To Sell Off Self-Driving Division (bloomberg.com)

Last week, Uber reported a second-quarter loss of $891 million, even though it brought in $2.8 billion in revenue. "While it's a 16 percent improvement from a year earlier, the loss follows a rare profit posted in the first quarter, thanks largely to the sale of overseas assets," reports Bloomberg. As a result, the company is being pressured by investors to sell its self-driving cars unit, which Uber is spending $125-200 million a quarter to maintain. From the report: Even after increased spending last quarter, revenue growth is slowing. Sales rose 63 percent to $2.8 billion in the second quarter compared with the same period last year. The rate in the first quarter was 70 percent. [Uber CEO Dara Khosrowshahi] Khosrowshahi is pouring large, undisclosed sums of money into food delivery, logistics and autonomous-car technology. The San Francisco-based company has said the food delivery business, Uber Eats, represents more than 10 percent of its gross bookings. Growth in that segment may be masking a slowdown in Uber's main business.

Comments

Logistics

[fluffernutter]

Whether or not anyone can get self driving to work, the logistical problems are the real killer. Who is responsible if the car makes a mistake? Not the owner, because they aren't controlling it. Who will insurance companies charge for liability insurance? When there is a construction site, who pays for the time to set it up so that autonomous cars can navigate it? I hope not tax payers. Who is responsible if they make a mistake? How do you stop people from simply walking in front of them whenever they want, knowing they will stop? Lots of things to figure out.