Taxi-hailing app Uber, one of the most backed start-ups in the history of start-ups, is rapidly losing money, the media have reported on Thursday.
According to a report by Gawker, which is in possession of Uber's internal documents, the company is losing millions of dollars every year.
These financial reports show the company’s revenue rising from $1.4m (roughly £900,000) a quarter to almost $57 million (£36.5m) in just over two years – from 2012 to 2014.
However, the company's overall profits fell from $3.5m (£2.24m) to $108.8m (£69.69) for the same period.
“When we get to net loss, that is what the company lost in the given quarter. So yes, they are still losing money,“ CB Insights analyst Mike Dempsey told Gawker.
However, when it comes to gross margin, Uber has every reason to be satisfied: it started negative in 2012, but quickly turned positive. It now has a gross margin of over $20m (£12.81) a year, the documents show.
According to The Guardian, here's what Uber had to say about the issue: “Shock, horror, Uber makes a loss. This is hardly news, and old news at that. It’s a case of business 101: you raise money, you invest money, you grow (hopefully), you make a profit and that generates a return for investors”, the statement read.
However, even if it is losing money, and fast, it still has no reason to worry. It now has over $1bn (£640m) in cash and cash equivalents stored away for a rainy day, up from $236m (£151m) in 2013.