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Uber foresees rapid growth and profitability in the coming years

Photo: ANP

Uber expects to almost double the value of taxi rides and delivery in the next three years. That should also bring adjusted operating profit to $5 billion by 2024, the company said during an investor day. Converted that is about 4.4 billion euros.

Last year, Uber lost $774 million by that measure, which shows whether its operations are profitable without looking at things like interest payments and depreciation. Uber has long wanted to be profitable quickly. In the past two quarters, this was achieved on the basis of adjusted operating profit. A net profit has remained out of reach for the time being, but further growth will bring that within reach.

To enable that growth, Uber wants to connect more traditional taxis to its platform. With this, the company is making a turn after it competed with ordinary taxis for years. However, more journeys via the platform also means that those same customers are more likely to use meal delivery business Uber Eats as well. In addition, the company also wants to deliver to stores, with more parcels being transported mean lower costs for Uber.

Not only the taxi rides and the deliveries should generate money, but also advertisements. Uber indicates that the advertising branch is still small, but by 2024 companies should purchase $1 billion worth of advertising from Uber. The freight business, with which Uber matches self-employed truck drivers with freight to be transported, should also be profitable within a few years.



Uber foresees rapid growth and profitability in the coming years
Source link Uber foresees rapid growth and profitability in the coming years

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