Uber Profitable for the First Time: A-Level Business in the News
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What's the story?
Uber has reported its first-ever operating profit in its latest quarterly results, marking a major milestone for the ride-hailing company that has racked up massive losses since its founding.
The profit of $326 million comes as Uber saw a 22% increase in trips over the past year. This growth in demand, along with cost discipline, contributed to the turnaround.
Uber's CEO highlighted that drivers earned record income of over $15 billion during the quarter. The results exceeded Wall Street expectations, driving Uber's shares up in pre-market trading.
While notable, Uber has posted net profits before due to one-time gains. This quarter marks the first time its core operations have been profitable. The results come after years of expansion losses and regulatory battles, including UK court rulings to classify drivers as workers entitled to benefits.
Uber appears to be turning an important corner but still faces challenges ahead to sustain profitability.