First the story:
Uber is freezing hiring for software engineers and product managers across its US and Canadian workforce, the company acknowledged to Bloomberg on Friday. The shift was reported by Yahoo earlier in the day. The freeze does not apply to Uber’s autonomous vehicle and freight-shipping divisions.
The news comes a day after Uber reported second-quarter operating losses of $5.4 billion—a new record for the company. That figure exaggerates Uber’s quarterly burn rate because it includes more than $4 billion in one-time charges related to Uber’s initial public offering. Still, excluding IPO-related charges still leaves around $1.2 billion in operating losses, worse than the $1 billion the firm lost in the first quarter.
Then a reader question:
I don’t understand how Uber loses money. What exactly is costing them so much money? They are basically google maps and find my friends combined with a billing provider. The technology can’t cost that much to manage. They pay their drivers a small portion of each ride and don’t have to pay car insurance or for fuel. What are they spending billions of dollars on? [Davinchy]