Tech

Report claims Uber posting huge losses

Leaked reports show Uber losses
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Leaked reports show Uber losses

On Wednesday, gossip blog Gawker published a story that claimed to "prove Uber is a money loser."

According to the story, the ride-sharing service has lost "tens of millions of dollars since 2012," citing purported internal financial documents obtained by Gawker.

The report comes at a time when several news outlets, including The New York Times and The Wall Street Journal, have been looking into the company's plans to attract more cash, and potentially go public.

"While it is de rigueur among observers of Silicon Valley's Game of Thrones to dismiss questions of profitability as short-sighted hand-wringing, the detailed documents obtained by Gawker demonstrate conclusively for the first time that Uber has been financing its astronomic growth by taking staggering losses," the story read.

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Gawker's story includes screenshots of some of the documents it claims are authentic. One allegedly shows that Uber lost more than $56 million in 2013 and more than $160 million by the first half of 2014.

Another document, Gawker claims, shows losses in 2012 of $20.4 million.

Sam Biddle, the story's author, told CNBC in an email, "My response would be that the origin of the documents doesn't whatsoever change the validity of the story."

A spokeswoman for the company responded: "Shock, horror, Uber makes a loss. This is hardly news, and old news at that. It's a case of business 101: You raise money, you invest money, you grow (hopefully), you make a profit and that generates a return for investors."