Uber reports record revenue, but investment losses are high

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In the April to June quarter, 1.8 billion trips were taken by the record 122 million monthly users of Uber, up 24% from the same period last year.

Mr. Khosrowshahi stated in prepared remarks on Tuesday, “I challenged the team to reach our profitability commitments even faster than projected, and the team delivered.

But the company pointed to other positive signs. Though Uber has had to contend with high gas prices and is entangled in a variety of legal disputes across the United States over the employment status of its drivers, it now has nearly five million drivers around the world, a record number and a 31 percent increase from a year earlier.

Uber’s strong results, on the heels of more mixed reports from other tech companies like Amazon and Microsoft, were not without blemishes. The company still lost $2.6 billion, including $1.7 billion from its investments in other ride-hailing businesses like Aurora, Grab and Zomato.

Story Highlights

  • The corporation performed better than experts had predicted, overcoming worries about high inflation to report $8 billion in revenue, a 105 percent increase from the same period last year, when the world was only starting to emerge from pandemic lockdowns. Although its food delivery division saw a 37 percent boost from a year earlier, Uber’s ride-hailing business growth was what drove the growth.

  • Uber reported having created $382 million in free cash flow, marking the first time in a quarter that it had done so. This means that it had made more money from its commercial operations than it had lost. The chief executive, Dara Khosrowshahi, is working to steer Uber toward routinely earning a profit, and he is aiming for that milestone. Mr. Khosrowshahi has instructed his staff to cut expenses and concentrate on profitability as the tech and business industries have shrunk.

On Friday, Uber said it would begin allowing drivers to see their destination and earnings for a trip before accepting a passenger, a change that the company said was aimed at giving its drivers more flexibility and support. The new program, Upfront Pricing, has been tested in about 20 U.S. markets this year and will be rolled out to most of the country, except California and some other markets, in the coming months, said Alix Anfang, an Uber spokeswoman.