The finances of ride-hailing giant Uber improved after the sale of its China business to rival Didi Chuxing, but it still managed to lose a huge amount of money.
Uber lost more than $800 million in the third quarter, according to a report from tech news site The Information, citing anonymous sources. But Uber’s exit from China in the middle of the quarter slowed the growth rate of those losses to less than 25% year-over-year, down from a 34% year-over-year drop in the second quarter, when it lost $750 million, according to a Bloomberg report in August, while still operated in China.
In August, Uber announced that it would sell its Chinese business to Didi Chuxing, based in China, after aggressively competing against it for the last two years. Uber has admitted in the past that it spent $2 billion in total on its Chinese operations, yet was only able to capture a small fraction of the market.
In terms of gross revenue, which includes driver payments, Uber took in $5.4 billion in first quarter, just 8% more than the $5 billion during the second quarter. That is far less than the same period a year ago, when gross revenue more than doubled every quarter before of the sale of its Chinese business.
But Uber’s net revenue, which excludes driver payments, actually grew steadily to $1.7 billion in the third quarter, a 240% bump from a year ago. In the second quarter, it had $1.1 billion in net revenue, or 190% more than the year-ago quarter.