Uber has reported an operating profit during a fiscal quarter for the first time in its history. The company reported its second quarter earnings for 2023 [PDF] on Tuesday morning, which included a net income of $394 million for the quarter, up $1.0 billion year-over-year and $588 million versus the preceding quarter. The company attributed its net gain to a 22% increase in trips on the platform, combined with “cost discipline” according to CEO Dara Khosrowshahi.
Uber said it saw gross bookings grow 16% year-over-year in terms of revenue, and that trips reached an average of 25 million per day across the platform during the quarter. And while the company reported its first ever net profit based on GAAP measurement, it still increased its spending on R&D and corporate G&A activity spending vs. Q2 2022 and the previous quarter in 2023, with Khosrowshahi pointing to “new growth initiatives.”
Uber’s freight business took a hit during the quarter, however: Revenue was down 30% year-over-year, which the company attributed to “the challenging freight market cycle” – something that could be interpreted as depressed consumer demand and continued supply chain challenges.
As for what new initiatives helped drive increased business, Uber pointed to expansion of its Uber One subscription plan to new markets; the launch of video ads both via its app and through in-car displays; its Waymo partnership that sees Waymo’s self-driving ride hail services available through Uber beginning in Phoenix; and the addition of new booking options through the app, including flights in the UK, and car rentals beginning in Boston and Toronto.