Uber could be set for third quarter losses of $800m

Ride-hailing company Uber Technologies could post losses of as much as $800m for the third quarter of 2016, as the company continues to feel the impact of its costly price war with rival Didi Chuxing in China.

However, Uber may still post a sales growth for the quarter, according to a report from tech news site The Information. As it is still a privately-held company, Uber does not have to report its quarterly earnings publicly.

The tech company has faced fierce competition from Lyft in the United States, and Didi in China, with the selling of its operations in the Asian country going some way to alleviating losses for the quarter.

Didi bought Uber's Chinese business, allowing it to claim a significant victory over the California-based entity, but bringing positive news for both as significant attempts to subsidise rides to gain an edge on each other was costing both sides millions.

The third quarter loss is related to Uber's own spending spree during the period — the company spent money in trying to improve its self-driving unit and food delivery service UberEats.

The $800m dent comes after a loss of at least $1.2bn in the first half of the year, despite the fact gross revenue was higher, at $5.4bn from $5bn in the previous quarter.

Although the company continues to grow steadily, Uber is likely to face further stern competition as the number of apps for sharing rides increases, indicating that sustained profitability remains a long term goal.