Uber Q3 Earnings: Company Reportedly Posting $800 Million Loss

Uber Technologies Inc. might be posting an $800 million loss in the third quarter of 2016, despite continued growth in sales. The company’s Chinese deal with Didi Chuxing Technology Co, taxes and its own hefty spending on promotions could be factors contributing to the loss, despite a $1.7 billion sales increase in the third quarter, up from $1.1 billion in the previous quarter.

News site the Information reported the figures Monday.

Uber is still a privately held enterprise and therefore, is not obligated to declare its earnings publicly. But, it did hold a call with investors last week to discuss the results.

The third quarter loss could in part be due to Uber’s own spending spree during the quarter — the company invested in its self-driving unit and food delivery through UberEats. The $800 million loss comes on top of at least $1.2 billion loss in the first half of the year although gross revenue rose to $5.4 billion in the third quarter from $5 billion in the second quarter.

A major decision that likely impacted Uber’s third-quarter earnings was its merger with Chinese ride-hailing firm Didi. In August, Uber sold its China operations to Didi Chuxing Technology Co. The deal gave Uber a 17.7 percent stake in Didi, while Didi agreed to invest $1 billion in Uber.

Uber is currently engaged in a showdown with the California DMV over its self-driving fleet, which the latter deems illegal.