Enter your email address below and subscribe to our newsletter

Uber Hits Massive Profit with Increased Bookings

By Oluchukwu Ikemefuna

Share your love

Uber, one of the biggest ride-hailing companies worldwide, just announced their first full-year profit since going public in 2019! They posted a net income of $1.43 billion in the fourth quarter, which is a significant increase from the previous year. The company CEO, Dara Khosrowshahi, mentioned that 2023 was a turning point for the company, showing their ability to generate strong and profitable growth.

With an average of nearly 26 million daily trips, Uber’s audience is larger and more engaged than ever. 

“2023 was an inflection point for Uber, proving that we can continue to generate strong, profitable growth at scale,” he said in a statement Wednesday. “Our audiences are larger and more engaged than ever, with our platform powering an average of nearly 26 million daily trips last year.”

Uber First Full Year Profit From Bookings!

The company has been actively expanding its services by entering new markets and cities around the world. They are constantly looking for opportunities to bring their ride-hailing and food delivery services to more locations. By expanding their service offerings and reaching more customers, Uber aims to provide convenient and reliable transportation solutions globally. This strategy has shot Uber’s profit up and has further made it relevant in the business world. 

Uber’s revenue for the quarter reached an impressive $9.9 billion, which is a 15 percent jump compared to the same period last year. This actually exceeded the projections of Wall Street, who were expecting $9.75 billion. Not only that, but Uber’s gross bookings amounted to a staggering $37.6 billion, showing a significant 22 percent year-over-year growth.

What’s interesting is that this marks the first time that Uber, which was launched back in 2009, has actually made money from its operations. While they had previously turned a profit in 2018 due to their investments, this recent posting shows that they are now generating revenue from their core business.

According to reports from The Wall Street Journal and the Associated Press, Uber has shifted its focus towards cutting costs and boosting its food-delivery division. They have been prioritizing profitability after years of focusing on growth. This strategic shift has allowed them to achieve this milestone of profitability while still expanding their services and reaching more customers.

Can Uber Maintain this Profitable Growth? 

Well, Uber has been focusing on several strategies to maintain its profitable growth. They are continuously expanding their services to more cities and countries, which helps them reach a larger audience. 

Additionally, Uber is investing in new technologies like autonomous vehicles and electric vehicles to improve efficiency and reduce costs. They are also diversifying their business by offering services like Uber Eats, which further increases their revenue streams. By staying innovative and adapting to changing market demands, Uber aims to sustain its profitable growth in the future.

Conclusion

Just a few weeks ago, the company announced that it would be closing down its alcohol delivery app, Drizly, by the end of March. They made this decision in order to focus more on their Uber Eats strategy, which has been a major part of their growth.

According to the Associated Press, Uber saw a 6 percent increase in delivery revenue and a significant 34 percent increase in revenue from their ride-hailing services. This growth can be attributed to Uber’s platform advantages and their smart investments in new growth opportunities, some of which have been explained above. 

The Chief Financial Officer, Prashanth Mahendra-Rajah, mentioned that they will be sharing more details about their strategy and plans for capital allocation in the coming week.

Excitingly, the shares of Uber Technologies Inc. reached an all-time high of $71.90 early on Wednesday. This shows the confidence and positive sentiment surrounding the company’s performance. 

Recommendations

Share your love
Abdullahi Kafayat
Abdullahi Kafayat

Abdullahi Kafayat is an enthusiastic writer interested in the tech world. She's a graduate of Obafemi Awolowo University and has a BSc in Chemistry. You can reach her at Kafayatabdullahi17@gmail.com.

Articles: 186

Newsletter Updates

Enter your email address below and subscribe to our newsletter

Stay informed and not overwhelmed, subscribe now!