Uber might actually turn a profit this quarter. What is Uber, you ask? Well, unless you have been hiding in your basement for the past few years… wait, scratch that.
Uber is an American technology company with services that include ride-hailing, food delivery, package delivery, couriers and freight transportation, as well as — through a partnership with Lime — electric bicycle and motorized scooter rental. For many of us, it is the company that, for the most part, replaced taxis.
Reports say this may be the first time Uber’s core operations have turned a net profit since its founding in 2009. Total losses since that time are said to have surpassed $22 billion. Yes, $22 billion.
The company previously expected to have a net loss of approximately $100 million this quarter but now says it could make an adjusted profit of up to $25 million. In a worst case scenario, the company cautions that it could still lose $25 million. Huh? Well, that is the confusing world of Big Tech. Regardless, Uber stock closed up 11 percent due to the updated forecast.
One might think that the company would be suffering after a cutback on travel due to the pandemic. In fact, in May of 2020, the company reported an 80 percent drop in business and a $2.9 billion loss for the quarter, resulting in thousands of employees being laid off and the company selling its self-driving car unit.
So why the sudden turn-around? Some say it may be Enron-style accounting with the company’s definition of EBITDA including a large list of exclusions. The growth of the company’s food-delivery business, while still losing money, has also certainly helped. Even so, the timing of this sudden profit (that coincidentally correlates with its No. 1 U.S. competitor, Lyft, showing an adjusted profit in the second quarter of this year) casts further suspicion.
I have used Uber. You likely have, too. It is a great idea and a wonderful service. If I owned a taxi company or drove a cab, I might feel differently. The idea that a corporation that has lost $22 billion and devastated an entire industry can still be operating should be a wake-up call for all business categories. Think that the industry you are in could never be affected by a company like this? Think again. As such, life is like an Uber request: You never know what you are going to get.
Have a thoughtful Thursday, and thanks for reading.
Shane Goodman
President and Publisher
Big Green Umbrella Media
shane@dmcityview.com
515-953-4822, ext. 305 | 
