It seems that Uber may be on track to make more money selling a building it owns in Oakland, California rather than selling rides. over the last 10 months. According to an article on Slate.com, in 2015, Uber bought the old Sears building in downtown Oakland for $123.5 million, with plans of moving its headquarters from San Francisco, but that never happened.
Now Uber is in the process of selling its 380,000-square foot building for $220 million, according to a report from the Registry, a website that covers Bay Area real estate deals.
In August of this year, Uber reported a loss of $645 million in its second quarter of 2017, which was actually a decrease from the $708 million it lost in the first quarter. Uber booked around $20 billion in rides in 2016 and, excluding its China subsidiary, which it sold in July last year, the company clocked in $6.5 billion in revenue. Still, Uber ultimately lost about $2.8 billion that year. (The company subsidizes rides.) All of which means that the roughly $96 million the company is pocketing off its Oakland property appears to be a far better return on investment than its main business, at least in the very short term.
Uber said that it was leaving Oakland because it was looking to strengthen its financial position, which is probably a good idea considering the hell ride the company has been on for the past 12 months. Selling its empty building in Oakland may be Uber's equivalent of searching beneath the couch cushions for loose change. And Uber needs a lot of change right now.
The above article was sourced from Slate.com. To read the original article click here.