Dive Brief:
- Uber Technologies reported today that its revenue grew 15% year over year in the fourth quarter of 2023 and 17% over 2022 for the full year, with net income for the quarter coming in at $1.4 billion.
- Gross bookings grew 29% for mobility services in the fourth quarter and 19% for delivery services year over year. Mobility services include ride-hailing, taxis, car-share, rental cars, delivery of rental vehicles and same-day package delivery.
- “2023 was an inflection point for Uber, proving that we can continue to generate strong, profitable growth at scale,” Uber CEO Dara Khosrowshahi said in the company’s earnings release.
Dive Insight:
With today’s 2023 financial report, Uber recorded its first full-year profit as a public company, according to The Wall Street Journal. “As you can see, we’re growing faster than the competition on a global basis. We continue to improve margins, and now that we’re profitable ... that creates other possibilities as well,” Khosrowshahi said on the company’s earnings call. The Uber CEO explained further that the company “had very strong, broad growth around the world,” particularly in Asia-Pacific markets.
In the competition for ride-hailing drivers, Khosrowshahi said Uber now provides fare and destination information upfront, allowing drivers to accept or not accept trips based on their preferences. “Drivers are seeing the trips that they want at the right price, and the network gets more and more efficient,” he said on the call.
Competitor Lyft, which will announce its fourth quarter and full-year earnings on Feb. 13, said yesterday in a press release that its drivers will earn at least 70% of rider fares after external fees such as local taxes and government-mandated insurance. Drivers will also be compensated for wait times on scheduled rides and will have more choices for certain rides and better guidance for airport pickups.
