Uber reports first ever full-year operating profit as chief hails an ‘inflection point’

Uber has reported its first full-year operating profit as the ride-hailer continues to emerge from years and billions worth of losses.

Income from its operations hit $1.1bn (£938.1m) in the year ending December 31, up from a prior year loss of $1.8bn.

Adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) soared 137 per cent to $4.1bn.

Uber’s CEO Dara Khosrowshahi said “2023 was an inflection point for Uber, proving that we can continue to generate strong, profitable growth at scale.”

Trips on the platform rose by nearly a quarter to 9.4bn, helping the firm net $137.9bn in gross bookings.

“Our audiences are larger and more engaged than ever, with our platform powering an average of nearly 26m daily trips last year,” Khosrowashahi said.

The bumper performance will fuel investor speculation of an imminent share buyback scheme. CFO Prashanth Mahendra-Rajah said the San Francisco-based firm was “looking forward” to sharing more about its “strategy and capital allocation plans” at its investor update next week.

Shares rose 2.15 per cent following the announcement.

Uber has consistently reported profits in the green this year in a string of quarterly and half-year updates. For years, it struggled to turn a profit on the back of heavy investment in R&D and its rapid expansion strategy.

The ride-hailing market is also fiercely competitive, with the likes of Bolt and Lyft vying for market share and resulting in lower prices.

Uber made global headlines with the biggest first-day dollar loss in US stock market history with an IPO on the Nasdaq exchange in 2019.