Have gig economy companies ended their money-losing streak?
Lyft and DoorDash just reported their first years with net profits. Instacart is likely next.
For a long time, it was unclear when or whether gig economy companies could actually make money. Not anymore.
After racking up hundreds of millions in losses since going public more than four years ago, DoorDash just reported $123 million of net income for 2024. Lyft, an early entrant to the rideshare scene, also just eked out a $23 million profit, its first full year of profitability ever.
Next up is likely Instacart. It has reported three consecutive profitable quarters in 2024 and is set to report its Q4 results on February 25. Analysts polled by FactSet expect the company to report making $419 million of net income in 2024, compared to a $1.6 billion loss in 2023.
Uber — which offers rides and food delivery, making it a common rival of both Lyft and DoorDash — had its first profitable year in 2023. So did Airbnb, the gig economy’s short-term home rental platform.
After years of waiting, the gig economy is finally paying off. The game plan for these companies has essentially been to ride out the pain of high debt and operating costs, sometimes heavily subsidizing operations with discounts, until their platforms become so ubiquitous that the revenue starts to make up for it.
And now it’s happening: consumers spent more than $250 billion on Uber, Lyft, and DoorDash combined in 2024. (The companies’ revenue, of course, is smaller because a chunk of that money goes to the restaurants or the drivers.)
A previous version of this article misstated the year when DoorDash went public.
