Uber delivers its first annual profit since IPO’ing — after ditching a hyper-growth mentality

You have arrived at your destination… after four years. Uber rolled up with its first annual profit as a public company, raking in nearly $1.9B last year — and $1.4B last quarter alone. The ride-hail pioneer, which IPO’d in 2019, posted a full-year profit in 2018, but that was thanks to investments. 2023 was the first year Uber’s actually taken home $$ from its operations. In Q4, rides were Uber’s fastest-growing biz, with bookings up 29% as folks whizzed off to concerts and Taco Tuesday nights. Delivery was strong too (bookings up 19%), but Uber’s freight biz lost steam as shipping slipped.

Change of MO… Before the pandemic, the modus operandi at Uber and other tech cos was growth at all costs — aka: forgoing profits to splurge on growth initiatives. Investment dollars were flooding in, letting startups burn through billions. In Uber’s case, it took the form of generous promo codes and discounts, as well as financial incentives for drivers. Uber stacked up tens of billions in operating losses over the years. Since the pandemic hit, it’s changed tack, streamlining operations:

• Leanin’ out: Uber got rid of non-core businesses like self-driving cars. Last month it said it was shuttering its alcohol-delivery app, Drizly (but’ll continue delivering booze through Eats).

• Cuttin’ costs: Uber laid off hundreds of workers last year, and said it’s cut back on customer promos and driver incentives.