Uber Records First Annual Profit

In a first for Uber since becoming a public company, the ride-hailing service posted its first full-year profit and its stock hit an all-time high Wednesday. "Like its final year as a private company, the last time Uber turned a profit, it got a huge tailwind from investments that helped fuel profits, $1 billion in 2023," reports the Associated Press. "The difference is that Uber has started making money from operations." From the report: Uber and other ride-share companies struggled through the COVID-19 pandemic. The company, whose stock recently joined the S&P 500 index, saw its ride-hailing business stymied as government lockdowns kept millions at home. But Uber has focused on cutting costs and, during the pandemic, building up a then-nascent food-delivery division, which has since become a major revenue driver. Uber's ride-hailing service, meanwhile, has gradually bounced back and the numbers from the fourth quarter suggest both are trending in the right direction. Delivery revenue grew 6%, and revenue for the ride-share part of the business climbed 34%. Industry analysts also noted growth in the company's membership platform. "Uber One now has roughly 19 million members across 25 countries, wrote William Blair's Ralph Schackart. "Uber One members generate roughly 30% of mobility and delivery gross bookings, up roughly 700 basis points year-over-year." Revenue totaled $9.94 billion, beating Wall Street projections for $9.75 billion. Gross bookings surged 22% from the prior-year period to $37.6 billion. For the year, Uber posted a profit of $1.89 billion, or 87 cents per share, on revenue of $37.28 billion.

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