Google News California’s Uber marks first profit as driver holdups ease, but shares sour
by SOURAV D | VIEW 1168
Uber Technologies Inc., the San Francisco, California-headquartered ride-sharing industry trailblazer, had reported a quarterly profit over Q3, 2021, marking off the first profitable quarter ever on an adjusted basis more than a decade after its launch, mostly boosted by a sharp uptick in restaurant delivery alongside ride-hailing services. Aside from that, as the Californian multinational ride-sharing industry giant, which has been aggressively spreading its wings across four continents thus far, found a path towards profitability, Uber executives also had been quoted saying that the company had dealt with a sheer shortage in drivers which had been largely linked to a pandemic-associated restriction all over the globe while increasing spending on drivers of its platform, alleviating investors’ concerns, Nonetheless, Uber had forecasted an adjusted profit between $25 million to $75 million for the holiday quarter, well-below an analysts’ estimate of around $114 million, Refinitiv data had unveiled.
Although, a swathe of Wall Street analysts had found Uber forecasts disappointing, shares’ prices of Uber Technologies surged 4.31 per cent to $47.19 apiece, while on the week, the ride-sharing giant’s shares’ prices had jumped more than 7.0 per cent.
Uber posts first quarterly profit ever
According to Uber Technologies quarterly earnings’ report for Q3, 2021 that ended on September 30, the San Francisco-headquartered ride-sharing behemoth’s adjusted earnings excluding interest, taxes, depreciation alongside amortization, came in at $8 million compared to a loss of $625 million digested at the same time a year earlier.
Uber Technologies’ overall business that included food sharing start-ups like of Uber Eats, Cornershop Inc and Careem Postmates among others, had reported a revenue growth of 72 per cent to $4.8 billon, above an analysts’ estimate of $4.4 billion, IBES data from Refinitiv had unfurled.
