Uber saw significant growth in 2023 as a result of its equity investments.
Uber Annual Profit
On Wednesday, Uber revealed its first full year of profits as a publicly traded company, indicating the end of an era defined by major venture capital subsidies and the growth-at-all-costs maxim.
“2023 was an inflection point for Uber,” said CEO Dara Khosrowshahi said in prepared remarks. In the first quarter of 2024,the rideshare and food delivery giant expects continued growth.
During the COVID-19 pandemic, Uber and other ride-share companies faced significant challenges. Despite recently becoming a part of the S&P 500 index, Uber’s ride-hailing business was hindered due to government-imposed lockdowns, which resulted in millions of people staying at home.
However, Uber has prioritized cost-cutting and developed its then-nascent food delivery business during the pandemic, which has since grown to be a significant source of income. In the meantime, Uber’s ride-hailing service has steadily improved, and the company’s fourth-quarter statistics indicate that both are heading in the right path.
According to Ralph Schackart of William Blair, Uber One currently has about 19 million members spread across 25 countries. “Roughly 30% of mobility and delivery gross bookings are generated by Uber One members, an increase of about 700 basis points year over year.”
Thanks to its investments, Uber was profitable for the entire year of 2018 before going public. Uber’s equity investments provided a significant tailwind in 2023, but the business also generated revenue from its operations. Uber reported $1.89 billion in profit on $37.28 billion in revenue for the entire year.
In his prepared remarks, Khosrowshahi declared, “We grew our business by improving marketplace health and scaling new products, bolstering our competitive position in key markets.”