Uber Might Make More Money This Year Selling Real Estate in Oakland Than Actually Selling Rides

Uber looks like it's on track to make more money selling a building it owns in Oakland, California, than it has selling rides over the last 10 months.

In 2015, Uber bought the old Sears building in downtown Oakland with the intention of moving 3,000 of its employees to an expanded headquarters in the smaller, less–filthy-rich city just across the Bay from San Francisco, which the company currently calls home.

That never happened. And now Uber is selling its 380,000-square foot building to the CIM Group, a Los Angeles–based real estate investment firm, for $220 million, according to a report from the Registry, a website that covers Bay Area real estate deals. Uber bought the building in 2015 for $123.5 million, but after never moving in as planned, the company announced in August that it was considering putting the building up for sale.

Uber isn't profitable. In August of this year the company shared that it had lost $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.

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Slate.com  Author:  April Glaser