The ride-sharing behemoth Uber has some positive updates to share. A surge in demand for rides after a pandemic and an apparent successful push into food delivery have apparently helped Uber turn a profit for the first time in the company’s existence.
According to Bloomberg, on Uber’s quarterly earnings call for Q2 2023, the company disclosed record-breaking figures of $326 million in operating profit and $1.14 billion in free cash flow. Despite a hyperinflationary economy in which corporations raise food and drink prices at will, the outlet states that ridership is beginning to return to pre-pandemic levels in the United States and Canada. Uber also reported a 33% year-over-year increase in drivers and a 26% increase in trips in the most recent quarter.
When Bloomberg asked Uber CEO Dara Khosrowshahi about the company’s recent growth and success, he said, “Both of these milestones were reached through a combination of disciplined execution, a record audience, and strong engagement.” He also said that Uber was “well-placed to continue making strong, incremental profits.”
Read More: Tiger Woods Supports Jay Monahan on PGA Tour Board
Uber’s Cost Discipline Pays Off with First Operating Profit
Since becoming CEO in August 2017, Khosrowshahi has envisioned Uber as the “Amazon” of transportation. While Uber has dominated the ride-sharing and delivery markets, in May the company announced that flight booking would be available to consumers in the United Kingdom. However, Khosrowshahi’s commercial skill is not the sole contributor to Uber’s first-ever operating profit.
Khosrowshahi attempted to shed light on the controversy around Uber’s seemingly arbitrary surge pricing and escalating prices in an interview with Wired. According to Forbes, Uber’s rates have increased four times faster than the rate of inflation in some circumstances.
The price of everything has increased. Inflation becomes a normal aspect of life. When you take an Uber, the driver keeps the vast bulk of your fare. Over the previous four years, driver pay has increased by 40–50% per week due to increases in both time and labor costs. While our prices have increased, customers continue to discover the value in what we offer. It hasn’t been detrimental to business at all.
Now that Uber is successful, it will be even more difficult to eliminate the company from our lives, for better or bad.
FAQs
Uber reported its first operating profit in the second quarter of 2023.
Yes, Uber is still profitable. The company reported an operating profit of $326 million in the second quarter of 2023. However, Uber still lost money on a net basis in the second quarter. This was due to the company’s continued investment in growth initiatives, such as its expansion into new markets and the development of new products and services.
