Money-driven: Uber's operations are finally profitable

8/1/23 8:00PM

Dream ride‍

‍Uber reached a long-awaited milestone yesterday after posting its first-ever operating profit of $326 million. The ride-hailing giant, which has burned through $31.5 billion in operating losses since it started reporting finances in 2014, saw what should have been a celebratory report marred — revenue missed analysts' estimates by $100 million, causing shares to plummet 7%, the steepest decline since October.

‍Fueled by cash

‍Founded in 2009, Uber's financial path has been tumultuous from the start, relying on generous venture capital funding during times of rock-bottom interest rates. Its founding principle was built on the belief that, if the company amassed a vast enough customer base and dominated the market by any means necessary, eventually profitability would be within reach. This high-octane strategy led to a dramatic and precarious period for the company, which saw losses mount, key figures resign, and even inspired a TV show in the process.

After 8 years, however, the need for a more steady and focused approach became evident, prompting Dara Khosrowshahi to take the wheel as the new CEO in 2017. Under Khosrowshahi’s leadership, Uber set its sights on cost control, implementing measures like cutting headcount during the pandemic and selling its self-driving unit for a substantial $4 billion. The company also prioritized efficiency in its delivery operations while adopting a more disciplined approach to customer discounts and driver incentives — a range of strategies that have enabled Uber to finally make its operations profitable.

Max Knoblauch3/20/26

China’s EV startup trio have all become profitable

China’s EV startup trio, Nio, Li Auto, and XPeng, are now all profitable, following the latter’s Q4 results released Friday.

XPeng reported a quarterly net profit of about $55 million, compared to rival Nio’s Q4 net profit (also its first) of about $40 million. Li Auto posted Q4 net profit of less than $1 million.

All three companies being profitable offers a stark contrast to the EV market in the US, where Rivian quietly delayed its 2027 profitability target in a filing about its Uber robotaxi partnership yesterday. Lucid is likely further away, and last month cut 12% of its US workforce as part of its “path toward profitability.”

Still, it’s not all rosy for China’s EV startups, either. XPeng ADRs were down more than 6% in Friday morning trading as its Q1 sales forecast came in below estimates. As China rolls back subsidies, auto sales are slumping. Chinese retail EV and hybrid sales fell 32% in February from the same month last year.

9.3%

Max Knoblauch3/19/26

As the war with Iran produces the biggest spike in US gas prices since Hurricane Katrina, car retailer CarMax is continuing to see heightened interest in EVs, hybrids, and plug-in hybrids.

“From Feb 1st - March 1st (inclusive), compared to March 2nd to March 15th (inclusive), we saw a 9.3% lift in page views for these vehicles,” a spokesperson for the company told Sherwood News.

As industry insiders recently told us, EV interest climbs when gas prices rise. That appears to be holding true even without EV tax credits, which the Trump administration ended under its new budget package.

CarMax also saw EV searches spike in 2022, amid Russia’s invasion of Ukraine and the resulting oil price spike.

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trust me.

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$35.4B

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The tariffs imposed by the Trump administration have cost automakers at least $35.4 billion since the start of 2025, according to a new analysis by Automotive News.

That total will continue to climb this year, since the Supreme Court’s February tariff ruling largely leaves the 25% levy on vehicles and auto parts untouched.

Toyota has taken the biggest hit, projecting more than $9 billion in tariff costs in its fiscal year ending this month, while Detroit’s big three automakers — Ford, GM, and Stellantis — were hit with a combined $6.5 billion tariff charge in 2025.

In the fourth quarter, automakers sold about 8% fewer imported vehicles in the US compared to the same period a year ago, per the Automotive News Research & Data Center.

Tariff charges come at a rough time for legacy carmakers, which are also scaling back EV plans following the Trump administration’s elimination of tax credits and fuel standard goals. According to Automotive News, the cost of EV write-downs and restructuring is, so far, nearly $70 billion.

Money-driven: Uber's operations are finally profitable

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