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Is Light at End of Tunnel for Uber, Despite $1.2B in Losses?

Uber Technologies Inc. is in uncharted territory. The ride-hailing company’s mounting losses so far in 2016 totaled at least $1.27 billion, even though bookings and net revenues are up.

That puts the company in rare company, even compared to Amazon. The online retailer famously built market share and value while losing money, but its biggest loss ever was $1.4 billion in 2000.

Uber says driver subsidies are the culprit for global losses – especially in China. But even that may soon evaporate from the loss column, since the company agreed to exit China in return for $1 billion and a 17.5% stake in competitor Didi Chuxing.

The company also just launched a customer loyalty program in a handful of cities, called Uber Plus. Similar to Amazon Prime, subscribers can pay a monthly fee and receive set fares for up to 20 rides.

For comments, questions or concerns, please contact Dennis Kaiser

Image of Uber’s Travis Kalanick by Dan Taylor/Heisenberg Media

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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