The Many Reasons Why Uber is Losing More Money Than Any Tech Company in History.

In July of this year, The Mercury News reported that Uber was facing more than 70 federal lawsuits throughout the United States. While the company is likely to incur expenses due to the cost of fighting these in court (as they had done with at least 60 other cases), that is not their biggest problem. The uncertainty of legal outcomes coupled with the negative association of having done something unlawful. Given that the company has lost more than$1.2 billion in 6 months, this is a major problem.

In 2013 GV’s (Google Ventures) David Krane lead their largest investment made to date into Uber. Pumping over $250 million into the company at around a $3.4 billion pre money valuation. Furthermore according to TechCrunch this accounted for 86% of GV’s $300 million dollar a year fund. Fast-forward to today and Uber says Alphabet (Google) executive David Drummond has stepped down from Uber’s board. The move follows a report by The Information about Mr. Drummond who was being sidelined from the board for a significant period of time. Also it has been reported that Mr. Krane who is a board “observer” is not being provided timely and up-to-date information. Uber is quickly losing credibility amongst its major investors.

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