Uber sets sights on profits in 2023 as pandemic pain eases

BENGALURU: Uber Technologies Inc said on Wednesday it would focus on delivering profits this year, after rounding off 2022 with blowout earnings as a surge in demand for airport and office rides helped the company rebound from pandemic lows.

Uber’s shares surged nearly 8% in premarket trading after the company reported a surprise fourth-quarter profit and Chief Executive Dara Khosrowshahi said the company was now focused on achieving profitability on a GAAP basis this year.

“The pandemic’s impact on our Mobility business is now well and truly behind us,” Khosrowshahi said.

Uber forecast adjusted EBITDA, a profitability metric that excludes some costs, between $660 million and $700 million for the first quarter, well above the average analyst estimate of $593.06 million, according to Refinitiv data.

“They absolutely knocked it out of the park... Profitable growth in this environment is very important,” said Tejas Dessai, an analyst at Global X ETFs, which includes Uber in some of its funds.

The rideshare market is benefiting from a return to normal and a rise in car ownership costs, which is pushing many to opt for cab rides. At the same time, more drivers are signing up as they look for new sources of income.

Uber, which operates in over 70 countries and 10,000 cities, said new rideshare products such as pre-booking, shared rides, car rentals and car-sharing was also boosting revenue.

Khosrowshahi said active drivers on the platform reached an all-time high in the fourth quarter and continued to grow in January, putting behind worries of a shortage of drivers signing up as demand jumped.

“We have clearly separated from our competitors on driver preference. This has driven meaningful category position gains globally, particularly in the U.S, where our position is at a nearly six-year high,” Khosrowshahi said.

Smaller rival Lyft is scheduled to report results on Thursday. Its shares also rose following Uber’s results.

Uber’s revenue rose 49% to $8.61 billion in the fourth quarter, beating the estimate of $8.49 billion. Rideshare revenue surged 82%.