Leading ride-hailing app Uber Technologies reached a major milestone by disclosing its first annual operating profit since transitioning to a limited company. This signifies a historic juncture for the firm, recognized for its expansive and sometimes contentious global growth.
The cab giant reported a sharp profit $1.1 billion in 2023, after years of operating at loss. This can be seen as a visible contrast when compared to the $1.8 billion loss that the company faced the previous year.
Key Highlights from the turnaround
The Cab giant’s financial turnaround has positively impacted its stocks, which saw a modest increase of 1% after the announcement and has surged by over 20% throughout 2024. Currently valued at nearly $150 billion, Uber has doubled its market value over the past year. The ride-sharing company also disclosed that it facilitated 2.6 billion trips in the final quarter of 2023, averaging nearly 26 million trips daily.
Uber has moved away from its contentious early practices and towards sustainable development and regulatory compliance under the direction of CEO Dara Khosrowshahi, who assumed the position in 2017. This change helped the company become more profitable, combined with an increase in the demand for its services.
As per the company’s report, the last quarter of 2023 proved to reap profits as Uber‘s total bookings increased by 22% to $37.6 billion, bringing in a revenue value of $9.9 billion. This demonstrates Uber’s skill for adaptability and perseverance despite facing numerous setbacks.
Why This Matters for Retail Investors
Uber’s move to profitability after years of losses signals improved business efficiency, suggesting sustainable growth potential. This boosts confidence in long-term investment value. The prospect of future shareholder returns, like dividends or buybacks, emerges with Uber’s first annual operating profit, appealing to investors.