Uber’s decision to sell up and move out of China earlier this month was prompted by huge losses totaling more than US$1.25 billion in 2016 alone, according to a report from Bloomberg.
The rideshare company sold its operations to Chinese rival Didi Chuxing three weeks ago, citing the fact that neither company had yet to turn a profit in the world’s biggest market. But the scale of their losses is staggering.
According to Bloomberg, the reason for Uber’s financial woes ultimately came down to competition with Didi Chuxing with both companies offering huge discounts in an attempt to lure customers their way. They would then pay their drivers directly to make up any shortfall in the driver’s earnings.
Uber faces similar struggles even in its traditionally strong markets, with the rise of similar companies contributing to a US$100 million loss in the US between April and June.
