Uber Reports Record Revenue as It Defies the Economic Downturn

Even as other tech companies like Google, Meta and Microsoft have announced layoffs and slashed costs, Uber’s business has stayed relatively steady, and Mr. Khosrowshahi said last month at the World Economic Forum in Davos, Switzerland, that he was not anticipating companywide layoffs.

Companies that offer internet-based services, like social media and video conferencing, boomed during the pandemic but have slowed since lockdowns ended. By contrast, Uber, which makes much of its money offering rides to people, cut about 7,000 employees in 2020 while people were stuck at home, but rebounded as the world reopened and people began carrying on with their normal lives.

“All of those other tech companies in hindsight now look to have overhired during the digital boom of the pandemic, when we were all stuck inside using digital services,” said Tom White, a senior research analyst with the financial firm D.A. Davidson. The businesses of companies like Uber and Lyft were “depressed” during that time, he said.

Uber reported $595 million in profit thanks to its stakes in other ride-hailing companies. The company said it expected to achieve operating income profitability at some point this year, which would be a sign of growing strength in its business.

Uber was one of the first tech companies to warn of an economic downturn. Last May, Mr. Khosrowshahi told employees that the company needed to rein in spending and focus on becoming profitable to adjust to a “seismic shift” in the economy and investors’ priorities.

Article source: https://www.nytimes.com/2023/02/08/business/uber-revenue.html