Uber reported its financial results on Tuesday, revealing steady growth and even a profit. The platform saw an increase in both riders and drivers, with $9.3 billion in revenue for the most recent quarter, an 11 percent increase from the previous year. Uber also generated $221 million in net income, marking its second consecutive quarterly profit from its own operations. This is a significant milestone for a company that has long faced questions about its profitability.
While many technology companies have struggled during the economic downturn, Uber has consistently delivered positive results over the past year. The company faced challenges early in the pandemic when travel came to a halt and drivers left the platform.
Uber announced a record-breaking 6.5 million drivers in the past quarter, highlighting the success of improvements made to the driver experience. These enhancements, such as providing drivers with information about a passenger’s destination and earnings before accepting a ride, have increased interest in working for Uber.
Passengers took 2.4 billion trips on Uber in the quarter, a 25 percent increase from the previous year. In October, Uber recorded a record number of monthly trips.
Dara Khosrowshahi, Uber’s CEO, expressed confidence in the company’s profitable growth and its ability to overcome challenges. However, Uber’s business model faces labor disputes as drivers are classified as independent contractors instead of employees. Labor activists argue that this classification exploits drivers, and legal challenges in states like Massachusetts, California, and New York could have significant implications for Uber’s business.
With its core business thriving, Uber is expanding into new sectors and regions. The company is making progress in countries like Spain, Japan, and Italy, and it launched Uber One, a monthly subscription service, in 18 countries last quarter. Uber has also partnered with Waymo, Google’s self-driving car unit, allowing passengers in Phoenix to request rides from autonomous vehicles.