Sunday, December 10, 2023

Uber cuts its losses to US$157 million in the first quarter

American multinational transportation uber considerably reduced its losses in the first quarter of the year, from $5.93 billion in the first three months of 2022 to US$157 million in 2023, thanks to increased revenues.

Uber reported this Tuesday that its billing of January to March this year it grew 29%, to US$8.823 million, above what analysts expected.

He Gross profit adjusted operating income, or ebitda, increased 353% to stand at $761 million.

During a conference call with analysts, Uber’s CEO, Dara Khosrowshahihighlighted Spain, along with Germany and Türkiyeas one of the fastest growing international markets for the company.

Spain It is a very regulated market in which we are having great success in terms of adding supply. Profits are strong, demand is strong and Spain is growing at a rhythm very significant. And we think we are gaining ground,” she said.

The executive also pointed out that the company is beginning to apply the artificial intelligence (AI) in its operations and that it foresees a significant impact of this technology in productivity, cost reduction and improvement of the experience of your clients.

“The initial and most significant effect that AI is going to have on our company is related to productivityKhosrowshahi explained, adding that Uber is “innovating faster than anyone.”

At another point in the conference call, the Uber CEO noted that while the company is innovating and building “others are restructuring” so it is in a better position than the competition.

Khosrowshahi also stated that AI will enable cost reduction through chatbots that will replace human agents in interactions with customers.

The figures of Uber point out that a large part of the growth in the first quarter was the result of the improvement in the results of the mobility unit, the one in charge of transporting passengers, whose revenues increased by 72%, going from US$2,518 million to US$4,330 million.

At the same time, delivery unit revenue increased 23% to US$3,093 million and cargo fell 23% to US$1.4 billion.

The number of journey increased significantly during the period, 24%, to US$2,124 million.

Khosrowshahi, explained in a statement that facing the future the company will focus on expanding the advantages of its products, size and platform “to sustain the leadership of growth both revenue and net profit.

For his part, the company’s financial director, nelson chaiindicated that he expects an increase in the company’s profitability in the second quarter, a period in which he expects to have an adjusted ebitda of between US$800 and US$850 million.


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