Uber has achieved its first-ever operating profit, marking a significant milestone for the company.
The American ride-hailing giant recorded pre-tax earnings of $326 million from its operations after experiencing a 22% increase in trips booked on its platform in the year ending June. This turnaround follows a history of massive losses for Uber, which reported an operating loss of $713 million in the previous year. The company’s global expansion efforts since 2014 have contributed to tens of billions of dollars in losses.
Turnover rose by 14% to $9.2 billion, slightly below Wall Street traders’ predictions.
However, the company managed to control costs effectively, with only a 1% increase. This cost discipline, along with robust demand and new growth initiatives, has led to the historic quarterly rise in operating profit.
Uber’s CEO, Dara Khosrowshahi, highlighted the positive results, stating that strong demand and driver engagement contributed to the success. During the quarter, six million drivers and couriers earned a record $15.1 billion.
Shares in Uber rose by 1% in pre-market trading after the company improved its forecasts for the current quarter. Uber now expects earnings before interest, taxes, depreciation, and amortization to range between $975 million and $1.025 billion.
Uber has faced scrutiny in the past, including an investigation into its lobbying practices and the classification of its drivers as workers entitled to minimum wage and paid holidays.
However, the recent profit marks a positive shift for the company and demonstrates its ability to maintain growth and profitability in the competitive ride-hailing market.
