Uber reports first annual net profit since going public

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Uber, the ride-hailing app on Wednesday (February 7) reported its first annual net profit since releasing IPO in 2019. The company released its statement in which it reported net profit of USD 1.9 billion for the year 2023. In year 2022, Uber has reported net loss of USD 9.1 billion. In its initial years under the stewardship of former CEO Travis Kalanick, Uber had witnessed tumultuous years as it defied regulators and amassed losses.

“2023 was an inflection point for Uber, proving that we can continue to generate strong, profitable growth at scale,” said current CEO Dara Khosrowshahi.

Uber’s customer base was “larger and more engaged than ever, with our platform powering an average of nearly 26 million daily trips last year,” he added.

Over 2023, Uber reported USD 37.3 billion in sales. This was more than what Wall Street was expecting. Increase in Uber’s profits was attributed in part to its increasingly popular food delivery service.

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Although Uber’s shares were slightly down on Wednesday. But they have doubled in value over past year.

Uber said it would make announcements about returning capital to shareholders at its Investor Day on February 14.

“Uber’s platform advantages and disciplined investment in new growth opportunities resulted in record engagement and accelerating Gross Bookings in Q4,” Chief Financial Officer Prashanth Mahendra-Rajah said as quoted by Reuters.

The company said that revenue from its ride-sharing business grew 34 per cent. This was attributed in part to “outsized trip growth” in Latin America and Asia Pacific markets.

“Management took the intrigue off the table for today in saying it will address capital return more formally at the investor day,” said RBC Capital Markets analyst Brad Erickson, adding that those plans are top of investors’ priority.

(With inputs from agencies)

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