>> Ride-hailing app Uber is scaling back its losses, but it's still a long way from proving it can be profitable, even as it works toward its goal of going public next year. Reuters correspondent Heather Summerville has been watching the company.>> So although Uber continues to grow its business, has more people booking rides, more people ordering food, it is still losing a lot of money.
In the second quarter of this year, Uber lost $891 million. That's its net losses. That's compared to about $1.1 billion in net losses from the same quarter a year ago. As a private company, Uber isn't required to disclose its financials, but started doing so to boost transparency ahead of its planned IPO.
>> Under the leadership of Dara Khosrowshahi who became CEO in September, Uber has juggled investing in new markets, while retreating from others where it was losing millions of dollars. Uber reported on Wednesday that its net revenue, which strips out what gets paid to drivers as well as promotions and refunds, was $2.8 billion in the last quarter, up more than 60% from the same quarter a year earlier.
And in a statement, Khosrowshahi hailed it is a, quote, impressive rate for a business of our scale.>> I spoke to some finance professors, and they are just not impressed with Uber's earnings. One in particular told me that if Uber continues to post losses like this, it can expect to have a reduction in its valuation when it does come time to go IPO next year.
>> Uber's most recent valuation was pegged earlier this year at $72 billion. That valuation was based on uber becoming a globally dominant logistics company, a vision it has since retrenched from. And it's growth faces regulatory risks in various cities. Earlier this month, New York City announced it was capping the licenses for ride hailing services for one year, dealing a major blow to the growth of the likes of Uber and Lyft.