CEO Travis Kalanick says the company is profitable in its developed
markets even beyond the US, but those profits are being immediately
reinvested in winning the war in China.
In an interview with the Financial Times, Kalanick said the company is
making money in North America, Australia, and its EMEA (Europe, Middle
East, and Africa) region. "Profitable" in this case means Uber is taking
into account all general and administrative costs, but excludes interest
Currently, Uber is stuck in second place in China, competing against an
opponent that just finished a $7.3 billion fundraising round that
included a $1 billion investment from Apple. While Uber is operating in
60 cities in China, Didi Chuxing (formerly Didi Kuaidi) is in more than
400. Of those, the Chinese company claims it’s profitable in half.
Still, Uber is spending heavily, having recently raised a $2 billion
credit line and brought in $3.5 billion from an investment from Saudi
Arabia’s sovereign wealth fund. Much of that money will go into China.