Uber Makes First Operating Profit, Driver Shortage Eases

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Uber Technologies Inc announced Thursday that it had its first profitable quarter on an adjusted basis since the start of its two most important segments a decade ago, ride-hailing and restaurant delivery.

Company executives also assured investors that Uber had solved its driver shortage after launching a program that had largely succeeded in luring drivers back onto the road.

However, a sharp fall in the value of its stake in Chinese ride-hailing service Didi caused a net loss of $2.4 billion in the third quarter, and Wall Street remains largely bearish in its forecast for Uber’s fourth-quarter performance.

The California-based company announced an adjusted profit of $8 million for the third quarter, compared with a loss of $625 million in 2020.

Uber forecast adjusted profit of $25 million to $75 million for the final quarter of 2021, compared with analysts’ expectations of $114 million.

Despite the adjusted profit, Uber’s earnings report is still considered bleak after smaller U.S. rival Lyft Inc announced its second consecutive adjusted quarterly profit of $67.3 million and forecast adjusted EBITDA of between $70 million and $75 million for the fourth quarter.

Both companies have yet to become net profitable, and neither company has made any forecasts for subsequent years.

For more information, you may view the original story from Reuters.

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