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Uber Attains First Annual Profit, Boosting Market Value Near $150 Billion

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Uber has achieved its first annual operating profit, leading to a surge in its stock and surpassing analysts’ expectations.

This success is attributed to strong demand for ride-hailing and delivery services, as well as the expansion of Uber’s advertising business.

Despite initial challenges since its initial public offering (IPO) nearly five years ago, the firm has overcome losses and regulatory hurdles, with improved margins as the pandemic subsided.

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“Uber’s battles with ride-hailing competitors, food delivery rivals, and global regulatory challenges have cost billions of dollars. However, as the pandemic subsided, Uber’s margins improved as competitors weakened and the company managed to reduce costs.”

Under CEO Dara Khosrowshahi, Uber shifted focus towards profitability, with revenues increasing 15% to $9.9 billion in the final quarter of 2023.

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Quarterly gross bookings grew 22% to $37.6 billion, and trips surged 24% in Q4 to 2.6 billion.

The grocery and retail delivery sector contributed significantly to growth. Additionally, a $1 billion earnings boost came from increased equity investments in companies like Aurora and Didi.

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Plans for a stock buyback and potential dividends have been hinted at, following Uber’s accumulated operating losses of over $30 billion since 2014.

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Diana Mutheu
Diana Mutheu
Diana Mutheu is a Tech enthusiast, happy to delve deeper into the African tech space covering Social Media, AI, Startups, Telcos, Cryptocurrency, Big Data, Women in Tech and all matters Tech. Write to me @[email protected]

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