- Uber achieved its first annual operating profit in 2022 after years of losses.
- His focus on cutting costs and improving margins proved success.
- Uber hopes to continue momentum amid a remarkable financial turnaround.
Uber achieves first profit
Uber announced its first-ever annual operating profit on Wednesday, a major turnaround after years of heavy losses under former CEO and co-founder Travis Kalanick.
Current chief executive Dara Khosrowshahi has seemingly managed what once felt impossible – transforming the chaos and excess of the Kalanick era into a profitable, maturing business.
CEO turns company around
Khosrowshahi took charge in 2017 with the company mired in scandals and internal dysfunction.
After stabilizing Uber’s reputation and navigating existential threats like the pandemic, his focus shifted to margins over growth.
Measures like subsidy cuts and performance-based layoffs helped Uber break even for the first time.
While not matching early lofty valuations, Uber generated $1.1 billion in operating profit for 2022 versus a $1.8 billion loss the prior year.
Khosrowshahi’s strategy pays off
Net profit hit $1.9 billion compared to a staggering $9.1 billion net loss inflated by past accounting adjustments.
Uber now hopes to sustain momentum and potentially announce share buybacks next week.
The impressive financial turnaround suggests Kalanick’s reckless era that valued growth above all may be fading into ancient history under Khosrowshahi’s operator mentality.
