Uber Loses $1.2B In First Half Of 2016: Report

LOS ANGELES (CBSLA.com) — Ride-hailing giant Uber lost about $1.2 billion in the first half of 2016, according to a report Thursday.

Bloomberg News says Uber is expected to post U.S. losses exceeding $100 million and totaling $750 million globally in the second quarter.

Combined with pre-tax losses of about $520 million, that brings Uber’s total red ink to roughly $1.27 billion, according to Bloomberg.

The results were reportedly announced by Uber finance chief Gautam Gupta on a conference call with dozens of shareholders to offer updates on the company’s business performance.

While Uber has battled with ride-sharing competitor Lyft for market share in the Southland and across the U.S., Bloomberg reported Uber has told investors the company currently has cornered as much as 87 percent of the U.S. market.

As part of a class-action settlement in April, Uber agreed to pay up to $100 million and make several policy concessions to settle a pair of major class-action lawsuits in California and Massachusetts in order to keep its drivers independent contractors instead of employees.

The settlement was considered to be a major step toward the ride-hailing company keeping its thriving business model that has been threatened as drivers have sought a more secure status and more bargaining rights.

(©2016 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

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