If you think you can compete with Uber, think again. The company has notched yet another quarter of staggering losses.
That’s according to a new story from The Information’s Amir Efrati, who reports that the ride-hailing company lost more than $800 million in the third quarter of this year. Those losses, which follow a reported $1.27 billion in the first half of the year, put Uber on track to lose $2.8 billion in 2016, according to The Information’s calculation.
While the millions in losses look bad on the surface for Uber — which was most recently valued at $68 billion — those losses are growing more slowly than they used to.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
These losses and the ability to do them without worries explain why it will be hard for anyone to challenge Uber as it works to dominate African ride-hailing. Simply, Uber can decide to drop $50 million and waste it in Africa just to own the market share. It has shown that it does not care and anyone that wants to challenge it must first go and raise millions of dollars and be ready for battle.
Take note – there is no market share available for ride-hailing in Africa unless you have $100 million in the bank!