Why is Uber losing so much money?

(AAP file)
(AAP file)

In the first half of 2016 alone, ride-hailing giant Uber lost NZ$1.7 billion.

The company, despite being worth $94 billion, is on track for a bigger loss than last year's $2 billion.

So why is the world's most valuable start-up losing billions every year?

Uber is still in a "growth phase" so the company is spending big with the aim of world-domination.

Just this year it invested heavily in the Chinese and Indian markets.

In the US, it's currently thought to control up to 90 percent of the ride-hail market, and recently it spent $930 million on self-driving cars.

Some experts predict it'll keep losing money until it puts its main competitor, Lyft, out of business altogether.

The main question from here on though, is how long Uber can continue driving in these losses before investors catch another ride.

Newshub.

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