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Uber lost over $1 billion in first half of 2016: Report

In this July 15, 2015 file photo, an Uber driver sits in his car near the San Francisco International Airport.
In this July 15, 2015 file photo, an Uber driver sits in his car near the San Francisco International Airport. AP Photo/Jeff Chiu/File

(Reuters) – Ride-hailing giant Uber Technologies Inc lost at least $1.27 billion before interest, taxes, depreciation and amortization in the first six months of 2016, Bloomberg reported on Thursday, citing people familiar with the matter.

The subsidies Uber grants its drivers was the main reason for the loss, finance head Gautam Gupta told investors in a quarterly conference call, Bloomberg said, citing sources.

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Uber, whose investors include Goldman Sachs Group Inc. and Amazon.com Inc. Chief Executive Jeff Bezos, could not immediately be reached for comment.

The company lost about $520 million in the first quarter of the year and another $750 million in the second quarter, Bloomberg said.

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Uber, which is now valued at roughly $69 billion, lost at least $2 billion in 2015, the report said.

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The company’s net revenue increased to about $1.1 billion in the second quarter from $960 million in the first quarter, while bookings rose to more than $5 billion from more than $3.8 billion in the prior quarter, Bloomberg said.

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