Millionaire Instagram playboy and CEO of Ignite International Limited Dan Bilzerian took to Twitter on Wednesday to claim that Uber “has never had a profitable month since it started,” drawing parallels to claims that Ignite is undergoing a period of financial turmoil.
Bilzerian’s went on to claim that Uber lost over $5 billion in one-quarter last year. It is true that Uber lost over $5 billion in Q3 2019. That said, Uber’s position in the market was markedly different from Ignite’s in 2019.
“It’s a routine cost for newly public companies—though, Uber’s is much larger due to the company’s size—and investors are likely to forgive it as a one-off,” wrote Eric Newcomer in Bloomberg.
The USA Herald previously reported that ignite lost over $50 million in 2019, spending close to $43 million on operational costs alone. It is a well known fact that Ignite spend inordinate amounts of money on its advertising and marketing.
That said, profits remained quite low in comparison. The profits the company did post have mostly been chocked up to capital infusions from investors. This isn’t to say that Ignite isn’t a successful brand, it certainly is with Bilzerian at the helm, who is a massive social media star.
There has been news that Ignite is currently undergoing financial turmoil this 2020. A recent report from its Board of Directors indicates:
“Although the Company has been successful in the past in obtaining financing, there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be on terms that are acceptable to the Company. The uncertainty of the Company’s ability to achieve profitable operations and its success in raising additional capital funding may cast significant doubt on the Company’s ability to continue as a going concern.”
Is Bilzerian right? Is this just a phase for Ignite? Only time will tell.
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