Uber records first ever operating profit

Uber records first ever operating profit

Uber has recorded the first operating profit in its history, after trips rose by more than a fifth in the last year.

The American company, best known for its ride-hailing app, recorded pre-tax earnings of $326m from its operations after a rise in demand led to 22% more trips booked on the platform in the year to the end of June.

In the previous year, the company recorded an operating loss of $713m.

Uber has racked up tens of billions of dollars worth of losses since it first reported details of its finances in 2014 after company executives pursued a relentless plan for global expansion.

The tech giant has previously reported profits after tax, but only because of revaluations of its equity investments or money gained by disposing of assets rather than from its operations.

Turnover rose by 14% to $9.2bn, which is slightly below the predictions of Wall Street traders.

However, costs for the company grew by only 1%. The slow rate of growth in costs was one of the areas hailed by Uber’s chief executive as a factor in its first quarterly rise in operating profit.