Uber, in the 21st century, has attained worldwide popularity. The company is a household name across the globe and its services are enlisted by many. However, unbeknownst to most the company has been running at a loss for over a decade now. Here, we answer the question everyone’s asking- Is Uber Profitable?
Is Uber Profitable – A Look into the Past
Uber, the famous ride-sharing and transportation service company, just saw its highest stock price on February 10th, 2021. The company saw a closing price of $63.18 which comes as quite a significant jump compared to its previous years. In 2019, Uber’s stock prices hit an all-time low, reaching a price per stock of a mere $33.96.
Earnings Over the Recent Years
Uber over the recent years of 2016 to 2020 has unfortunately reported a series of losses. In 2020, the company reported a negative net income of $6.7 billion. Still, they did see a rise in profits during the 2018 fiscal year. This allowed them to claim a net income of $997 million.
As of 2022, Uber boasts a market cap of $67.516 billion and a year-to-date return of -13.47%. The company also witnessed a loss per share of $1.28 and by the end of 2021 had accumulated a whopping $2.41 billion in net losses.
According to Statista.com, Uber’s total number of users during the final quarter of 2020 amounted to a thumping 93 million people. This totals to a 19% increase from the previous year. The company also boosted a global net revenue of $11.1 billion during the 2020 financial year with $57.9 billion generated by global bookings worldwide.
When Can We Expect Uber to be Profitable?
In recent years, Uber’s outlook on profits seems to be showing improvement. Uber as a company has struggled with decades of loss, however, now things seem to be taking a turn for the better.
During the third quarter of 2021, the company claimed that they expected to make a profit of $25 million upward, as opposed to the net loss of $100 million. In the post-pandemic era, with a shortage of drivers and increasing costs for customers, Uber seems to be reaping the benefits. And finally, in November of 2021, the company presented a profit of $8 million for the fiscal quarter that ended in September. This comes as a blessing to the Californian-based company as the previous year of 2020 brought them a massive loss of $625 million.
Thus, Uber’s future seems to be looking up. And this mammoth service company may finally reap the benefits of its labor.
