(qlmbusinessnews.com – – Wed, 2nd Aug 2023) London, Uk – –
Uber, the disruptive ride-hailing company that revolutionized the taxi industry, is now setting its sights on the holiday travel sector in the UK. With its recent milestone of reporting its first-ever global operating profit, Uber's CEO, Dara Khosrowshahi, unveiled his vision of transforming the app into a comprehensive travel platform.
During the April to June period, Uber experienced a surge in trips, with approximately 25 million rides taken daily on average, marking a 22% year-on-year increase. The resurgence of travel in North America, after the pandemic's impact, played a crucial role in this record number of rides, totaling nearly 2.3 billion during the quarter.
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With the travel industry's rebound, Khosrowshahi identified an opportunity for Uber to expand further, particularly in the UK, where travel agencies still hold significant influence compared to other markets like the US. The company already made strides by introducing flight bookings in May and train and coach bookings last year within the UK through the app.
Khosrowshahi expressed his ambition to challenge traditional tour operators and establish Uber as a dominant player in the travel sector. The new services, however, have not negatively impacted demand for Uber's core taxi service, as initially feared.
Khosrowshahi, who assumed the CEO role in 2017, has been diligently working to improve Uber's financial performance. Under his leadership, the company has emphasized cost discipline, leading to layoffs and other cost-saving measures. These efforts have paid off, as evidenced by the ride-hailing, food delivery, and freight business achieving a profit of $326 million in the April-June period, a remarkable improvement from the $713 million loss reported in the previous year.
Uber's revenue also demonstrated robust growth, increasing by 14% year-on-year to $9.2 billion, while costs rose by a mere 2%. The company experienced the most substantial revenue growth outside the US and Canada, with a minor setback in its small freight unit in those regions.
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Despite facing challenges due to the pandemic's impact and driver shortages, Uber's taxi business is bouncing back healthily, while food delivery services remain strong.
Khosrowshahi acknowledged that profitability was not typically associated with Uber in the past. However, with the recent success and the company's determination to diversify its offerings, Uber is making significant strides towards establishing itself as a profitable and comprehensive travel app. Tour operators in the UK should take note, as Uber aims to become a major player in the travel market.
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