After the cold winters of struggles, the ride-hailing service, Uber, is moving ahead of its loss-making startup stage and starting to make progress on its profitability goals.
Uber Records First-ever Profit In Its History
The same is confirmed when the company posted a surprise profit in the second quarter (Q2) of 2023.
This achievement holds a great significance as this is Uber’s first recorded profit as a public company.
In coming times, the American transportation conglomerate expects its profits to rise further due to the fact that traveling is increasing and return-to-office working patterns are also getting back to normal.
Uber generated a gross profit of $394 million in Q2 2023, as per a media report.
Besides this, the company also recorded free-cash-flow of $1.14 billion.
The news of the profit has also affected the company’s shares as its prices rose about 3.7%.
Further, the company’s net revenue in Q2 2023 was $9.23 billion which was 14.4% more than the revenue in Q2 2022.
Uber’s gross bookings have also increased by 16% to $33.6 billion during the same time period.
In the meantime, the company’s rides revenue rose 25% to $16.73 billion and delivery income rose 12% to $13.88 billion.
Strong Driver and Courier Engagement
“Robust demand, new growth initiatives, and continued cost discipline resulted in an excellent quarter, with trips up 22% and a GAAP operating profit, for the first time in Uber’s history. These results also translated into strong driver and courier engagement, with 6 million drivers and couriers earning a record $15.1 billion during the quarter. Both of these milestones were achieved through a combination of disciplined execution, record audience, and strong engagement. Uber is well-positioned to sustain strong, incremental profit generation,” said Dara Khosrowshahi, Uber CEO.
In another development, the company has announced that chief financial officer Nelson Chai is stepping down on January 5.
Apparently, Uber seems to be searching for his replacement presently.
Earlier, Chai said, “When I joined the company in 2018, Dara asked me to lead the financial transformation of the company. As you can see from our Q2 results, that transformation has occurred. I am very proud of the great work we have all accomplished and thank Dara for his partnership,” in a statement.
