Uber Reports Record Ridership and Second Straight Quarterly Profit

Uber Reports Record Ridership and Second Straight Quarterly Profit

Passengers took 2.4 billion trips on Uber in the quarter, a 25 percent increase from a year earlier. In October, Uber recorded a record number of monthly trips.

“These results demonstrate that Uber continues to drive profitable growth at scale — and why we believe we’re well positioned for the journey ahead,” Dara Khosrowshahi, the company’s chief executive, said in prepared remarks.

The biggest threat to Uber’s business are labor disputes it faces around the country. Uber drivers are classified as independent contractors rather than employees, a distinction that saves the company money because drivers must pay their own expenses and are generally not provided health insurance or a minimum wage. Uber says drivers appreciate the flexibility of being independent, rather than having to sign up for shifts.

In recent years, labor activists in states like Massachusetts, California and New York have tried to chip away at that business model, contending that it exploits drivers. A challenge to a California law that voters passed in 2020, giving drivers limited benefits but precluding them from being classified as employees, is set to be heard by the state’s Supreme Court. If the court overturns the law, that will have significant ramifications for Uber’s business.

With its core business doing well, Uber is moving into other sectors and regions. Mr. Khosrowshahi said the company was making “good progress” in expanding into countries like Spain, Japan and Italy. It took Uber One, its monthly subscription service, to 18 countries last quarter, and entered a partnership with Waymo, Google’s self-driving car unit, to allow passengers in Phoenix to request Uber rides from autonomous vehicles.

Add a Comment