Uber Posts Surprise Profit As Ridership Reaches New Record

Uber generated its first-ever operating profit according to generally accepted accounting principles, of $326 million, and recorded a free cash flow of $1.14 billion

Uber clocked a net income of $394 million in the second quarter, far surpassing the loss of $49.2 million, thanks in large part to unrealised gains in equity investments, as Bloomberg reported. The company also generated its first-ever operating profit according to generally accepted accounting principles, of $326 million, and recorded a free cash flow of $1.14 billion.

According to the report, Uber CEO Dara Khosrowshahi said, "Both of these milestones were achieved through a combination of disciplined execution, record audience, and strong engagement." He added that the company was "well-positioned to sustain strong, incremental profit generation."

Uber projected gross bookings of $34 billion to $35 billion in the current quarter and adjusted earnings before interest, tax, depreciation and amortization of $975 million to $1 billion, both beating analysts’ forecasts.

The company also announced that Chief Financial Officer Nelson Chai is stepping down effective January 5, marking one of the most high-profile departures since the company went public in 2019. A search for his replacement is underway. "When I joined the company in 2018, Dara asked me to lead the financial transformation of the company,” Chai said in a statement. “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."

Chai’s pending departure comes as Uber is maturing into a broader and more stable company. Uber’s business has remained largely unscathed from elevated inflation rates as customers are still willing to pay a premium for the convenience of hailing a ride and getting food delivered to their door. After struggling with a driver shortage that caused fares and wait times to increase, Uber has managed to get its driver supply above pre-pandemic levels — it was up 33 per cent in the second quarter compared with last year. Uber has focused on adding new features and products to the app including a teen rides program, the ability to book group and guest rides, video gift messaging and a boat service.

The number of trips, which jumped 26 per cent in the quarter, gross bookings and active drivers in the mobility unit all hit record highs, the company said.

Shares of Uber jumped about 3.7 per cent in premarket trading in New York.

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