# Uber could post first adjusted profit this quarter as ride demand returns
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-09-21
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Uber Technologies Inc Forecasting Profit Milestone Ahead of
Meta Description: Uber could achieve its first adjusted profit this quarter as online food ordering rises and ride bookings recover. Shares up 8% on upbeat outlook.
URL: https://financedigest.com/uber-could-post-first-adjusted-profit-this-quarter-as-ride-demand-returnshtml

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By Nivedita Balu and Akanksha Rana

(Reuters) – Uber Technologies Inc could post its first profit on an adjusted basis for the current quarter, reaching the elusive milestone sooner than expected as online food ordering surges and ride bookings recover from pandemic lows.

Shares of the company, which has spent billions over the last few years on growing its business, were up about 8% in early trading on Tuesday following the upbeat profit outlook.

The COVID-19 pandemic and a shortage of [drivers crushed Uber](https://www.financedigest.com/french-uber-drivers-to-earn-more-than-8-per-ride-after-union-deal.html "French Uber drivers to earn more than  per ride after union deal") and smaller rival Lyft Inc last year, as most people worked from home or preferred to invest in a car. However, Uber’s [food delivery](https://www.financedigest.com/european-food-delivery-shapes-up-with-getirs-gorillas-buy.html "European food delivery shapes up with Getir’s Gorillas buy") business boomed as more people ordered in.

Uber’s projections come after Lyft last month [posted an adjusted quarterly](https://www.financedigest.com/tesla-posts-record-quarterly-deliveries-after-price-cuts-up-4-from-q4.html "Tesla posts record quarterly deliveries after price cuts, up 4% from Q4") profit three months ahead of target, helped by lower costs and rising demand for rides as offices reopened. Uber had forecast to reach the milestone by the [fourth quarter](https://www.financedigest.com/german-gdp-contracted-by-0-4-in-the-fourth-quarter.html "German GDP contracted by 0.4% in the fourth quarter").

Uber said on Tuesday it was expecting adjusted EBITDA, a profitability metric it uses, to breakeven in the [third quarter](https://www.financedigest.com/greek-residential-property-price-recovery-picks-up-in-third-quarter.html "Greek residential property price recovery picks up in third quarter"). It forecast between a loss of $25 million and a [profit](https://www.financedigest.com/hellofresh-sees-2023-core-profit-of-460-540-million-euros.html "HelloFresh sees 2023 core profit of 460-540 million euros") of $25 million, compared with the prior forecast of a loss of $100 million.

We view this as a clear positive sign,” MKM Partners analyst Rohit Kulkarni said, highlighting that Uber’s [shares have been under pressure](https://www.financedigest.com/kraft-heinz-flags-margin-pressure-from-inflation-shares-fall.html "Kraft Heinz flags margin pressure from inflation, shares fall"), having lost most than a fifth of their value so far this year, as profitability remained uncertain and spending related to driver incentives were unclear.

Over the past year, Uber has reduced staffing and offloaded its food delivery business in unprofitable markets to [cut costs](https://www.financedigest.com/gms-cruise-to-focus-on-cost-cuts-as-it-ramps-up-robotaxis.html "GM’s Cruise to focus on cost cuts as it ramps up robotaxis") and emerge from the pandemic a slimmer company.

We’ve not only grown our [global leadership across both mobility and delivery; we’ve done so more profitably than ever before..](https://www.financedigest.com/a-report-on-global-insulin-delivery-device-market-by-pmr.html "A Report On Global Insulin Delivery Device Market By PMR"). Uber is reaching an important milestone,” Uber [Chief Executive Officer](https://www.financedigest.com/host-analytics-appoints-chris-labruna-as-chief-revenue-officer.html "Host Analytics Appoints Chris LaBruna as Chief Revenue Officer") Dara Khosrowshahi said.

Uber forecast gross [bookings](https://www.financedigest.com/publisher-bloomsbury-casts-upbeat-forecast-says-books-affordable-pastime.html "Publisher Bloomsbury casts upbeat forecast, says books ‘affordable pastime’") between $22.8 billion and $23.2 billion in the third quarter compared with its prior forecast of $22 billion and $24 billion.

The revision is evidence that rides were returning to [pre-COVID levels](https://www.financedigest.com/foreign-tourism-to-portugal-surpasses-pre-covid-levels-in-july.html "Foreign tourism to Portugal surpasses pre-COVID levels in July"), said Haris Anwar, senior analyst at Investing.com.

(Reporting by Nivedita Balu and Akanksha Rana in Bengaluru; Editing by Shinjini Ganguli)


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