Technology

Uber on highway to profit after shares boost

Uber on highway to profit after shares boost

San Francisco: Uber shares revved higher Thursday as the global ride-hailing giant’s quarterly update showed it moving on a path to profitability faster than expected.

The San Francisco-based company still lost $1.1 billion (Dh4.04 billion) on revenue that increased 41 per cent to $3.7 billion when compared to the same period a year earlier.

“2019 was a transformational year for Uber and I’m gratified by our progress,” said Uber chief executive Dara Khosrowshahi.

Uber shares were up some four per cent in after-market trades that followed released of the earnings report.

Uber beat earnings targets consistently last year, with the help of spending discipline and money made from the sale of an Eats food-delivery service in India, according to chief financial officer Nelson Chai.

Revenue was up in Uber’s ride-sharing business as well as Eats food delivery and its Freight service that matches truckers with loads for deliveries, the earnings report showed.

Daniel Ives at Wedbush Securities called the results “a big step forward” for Uber and “an important first step forward towards regaining Street credibility after the major stumble out of the gates” with its public share offering last year.