Uber Just Reported Its First-Ever Operating Profit

Uber Just Reported Its First-Ever Operating Profit
Daniel Johnston

4 months ago2 mins

What’s going on here?

Uber’s been burning rubber, posting its first-ever operating profit last quarter.

What does this mean?

Even as prices are climbing, it seems consumers aren’t ready to give up the convenience of hailing rides and ordering takeout. Instead, they’re doing it with more gusto than ever. And Uber – well, it’s been more than happy to meet that sky-high demand. With driver numbers back to pre-pandemic levels, the company was in the fast lane last quarter. The result: a 26% jump in trips on the platform, record-breaking ride-hailing bookings, and food delivery orders at an all-time high. Throw in some savvy cost controls, and Uber cruised to its first operating profit. After years of chasing growth, that switch to profitability is a milestone worth honking about.

Uber profit

Why should I care?

For markets: No Lyft-off.

Uber’s share price has almost doubled this year, and that’s left rival firm Lyft red-faced about its modest 9% increase. See, Lyft’s been losing market share, and it’s Uber that’s been picking up the slack – and the passengers. By the end of June, Uber had scooped up about three-quarters of US consumer ride-share sales. Part of that success is probably down to the breadth of its offerings: after all, Uber offers food delivery too, unlike Lyft. And while the trailing firm plans to cut fares to attract riders, Uber’s adding even more bells and whistles like group and guest rides and even video gift messaging.

Uber vs Lyft stock

The bigger picture: Freight nerves.

One area that didn’t shine so brightly was Uber’s freight business, but that’s hardly a surprise. After all, consumers are more inclined to spend their cash on services rather than goods these days. Even logistics giants like Maersk are warning of falling volumes, while the IMF reckons growth in the amount of goods being traded worldwide is set to drop sharply from last year’s levels.



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