Uber’s raking in money in SF, but the story is complicated

Uber is now on a pace to make $500 million a year in revenue in the San Francisco market alone, according to CEO Travis Kalanick. Kalanick spoke on the matter over the weekend at a conference in Munich, and Business Insider reported the news Monday, making the argument that Uber is far larger than the taxi industry, which Kalanick claims only brings in $140 million a year in SF. I’ve reached out to the SFMTA to confirm that number and will update this if I hear back.

Prior to today, the most recent SF revenue stats from Uber surfaced last November, also via Business Insider. At that point, the leaked Uber presentation showed the company’s run rate in SF was $212.4 million based on its December 2013 revenue. Roughly a year later, it’s at $500 million — so the company has doubled in size in the city.

Originally, there was a significant, missing piece of information from Kalanick’s remarks. As Kevin Roose pointed out on Twitter, Kalanick didn’t explain whether $500 million includes the money Uber has to pay drivers.

The company later told me that it does. Uber takes a roughly 20 percent cut of each transaction, giving the rest of the money to its independent driving partners. Including the full booking fee in its revenue statistics is the difference between gross revenue (all money transacted) and net revenue (considering certain basic deductions).

Uber is touting its gross revenue to demonstrate its size, but some have questioned whether that number accurately represents the size of Uber’s business. $100 million — Uber’s cut after it pays out drivers — is a far cry from $500 million, after all.

For the time being, Uber can’t markedly shrink the cut drivers are taking, so its real business is arguably its 20 percent cut, not the full amount of booking revenue. Either way, the stats show the company is still growing at a rapid, staggering rate.

 

This story has been updated to include Uber’s confirmation that $500 million is its gross yearly revenue in SF, not net yearly revenue.