UBER Technologies has set its sights on delivering profits this year, after rounding off 2022 with blowout earnings on a surge in demand for airport and office rides.

Shares of the company surged nearly 8 per cent in pre-market trading, after chief executive Dara Khosrowshahi said on Wednesday (Feb 8) that it was now focused on achieving profitability in 2023 on a generally accepted accounting principles basis. She added that the Covid-19 pandemic’s impact on Uber’s mobility business was “well and truly behind us”.

Uber’s revenue rose 49 per cent to US$8.6 billion in the fourth quarter of 2022, beating an earlier estimate of US$8.49 billion. Ride-sharing revenue surged 82 per cent.

For the first quarter of 2023, the company forecast adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) at between US$660 million and US$700 million. Refinitiv data showed that this was well above an average analyst estimate of US$593.1 million.

Following the upbeat forecast, shares of rival Lyft also rose.

The ride-sharing market is benefiting from a return to normality, as well as a rise in car ownership costs which has pushed many to opt for cab rides. At the same time, more drivers are signing up as they seek new sources of income.

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Uber, which operates in more than 70 countries and 10,000 cities, said new ride-sharing products were also boosting its revenue. These included pre-booking, shared rides, car rentals and car sharing.

Khosrowshahi said the number of active drivers on the platform reached an all-time high in the fourth quarter of 2022 and continued to grow in January. This allayed worries about a shortage of drivers signing up amid growing demand.

“We have clearly separated from our competitors on driver preference. This has driven meaningful category position gains globally, particularly in the US, where our position is at a nearly six-year high,” she said.

Analysts have raised concerns about Lyft losing market share to Uber. The smaller rival is scheduled to report its results on Thursday. REUTERS