In the year 2016, for the first 9 months, the loss which the company incurred was a whopping 2.2 billion dollars. These figures which were out was a secret source of the organization, identity has not been revealed to the individual who has provided us the information. Every quarter the amount of loss which the organization has seen is really astounding.
Even though Uber had to face this extreme level of downfall in its revenue there has a consistent level of growth in its business. The organization has raised around 11 billion dollars from its investors and the way the depletion in the income has affected the growth. It is a fact that, with this kind of loss which the organization has so far faced, we can say that, they might lose them over a period of time.
On the flips side, the organization has been trying to create a new trend in the modes of transportation. It becomes a question mark, whether Uber will be able to continue to invest in Self Driven automobiles. The loss which the company has faced is really huge and it is going to take a real great time to recover from it, though it is still able to create some amount of revenue.
If Uber is not going to establish a good stand in the field of transportation, then it would get itself into a great downfall. It is at present trying to create a different level of a mode of transportation, which will make the people travel to different places, faster and seamlessly. The automobiles would take completely different attire and it is going to help Uber reach for the skies.
Uber has been making efforts to persuade a few investors to make contributions for the rides. If we look into the deep we can see that the organization is facing many obstacles and it is getting hard to keep pace with changing the economy and people’s needs. But, they have been in the field of ride-hailing of cabs for a long period and they are aware of the business tactics which they need to apply.
This kind of turmoil’s and problems is not a new thing to them, they have been through a lot and they have come out well. What they are facing now, the financial loss is just another problem and it is just another phase which they need to overcome. It is a fact that the investors are disappointed with the loss in the economy, but they hope that they will be able to regain the lost composure.
It has been around 7 years since the organization was found and almost every year it has incurred some amount of loss. But, for the year 2016, the economic downfall has been really huge, with the figures of the revenue which the company has acquired. The loss would be close to 50 percent of the actual income; this has got the investors really worried and doubtful on making any other further investments.
Recently, the organization had to leave China with its business, unfortunately. It was unable to operate with the terms which the country had on its stand. Until the organization was having its business in China, the revenue was high and good. It couldn’t hold on to its business in the world’s largest country. If it was able to create a scenario according to the norms which the country pose on it, it would have definitely made a big name in the Chinese market as well.
Uber is planning to take a different path; they want to try the way Amazon is presently pursuing. In the initial years of the business, which Amazon had, did go through a huge loss. But, over a period of time, it did regain all its lost and now it is the best online trading organization in the world. Now, the ride-hailing organization would like to follow the footsteps of Amazon, in getting its business back on the track.
It followed a unique and different way of getting the products to its customers. Uber has to implement the same idea, they need to implement an idea which has not been tried before and make sure it reaches the success ladder. It is advisable that they take small steps when they are trying new things, so they are safe about what they are trying out.
What Amazon did with its own venture a decade was a commendable thing. But, the officials at Uber state that they would like to take it a notch up. They have already started to expand their business, right now they are planning to get into India. There is another factor which we need to consider is that the company is investing on the next generation automobiles, which are the self-drive cars.
This could be considered as one of the reasons why the company is unable to hold onto the revenue which it has incurred so far. It has been investing in the expansion and the new age technology, after being through such a huge loss. The facts and figures of the finances were given out by an insider, as the information needed to be kept confidential.
A few people state that the base for the organization is pretty unstable and that is the main reason behind the consistent loss in its venture. A statement has been made cynically that, the organization is unable to manage the prices, the way Amazon was able to do. Amazon removed the factors which will lead to increase in the price of the products.
When it comes to Uber, it requires everything like any other normal cab requires, so it is difficult to get rid of the factors which are making the company lag behind. Meanwhile, the organization has its own tactics applied and it is very well aware how to get the riders satisfied with its service. The critics state that Uber is able to pull off this trick, only because of the funds it has raised through its investors.
It has been 7 years down the lane, it has reached all parts of the world, at present, it is available in around 400 different cities around the world. Uber has come a long way after a heap of hardships and downfalls. It is making efforts to stay strong after the huge loss; it is a big setback which they had to face. The phase which they are facing at present is going to pass away and it is going bounce and make it big than ever before.
Author Bio: Andrew Shah is the Digital marketing Manager of Zoplay. He is a writer and coffee lover. He has is a graduate in Computer Science and Post Graduate in Entrepreneurship and leadership from Ulyanovsk State University, Russia. He is a passionate blogger & SEO Specialist. Zoplay is a Software Development company which has launched Cabily Script which is a Uber Clone with Android and iOS apps.