Uber Q3 - Core Business Making Money

Uber was among the companies reporting third-quarter numbers. With a bit of adjusting, this was their first quarter of reported profits. The core business made money but their investment in Didi, the Chinese ride-hailing company, lost $3.2 billion in value. The ride-hailing (mobility) division made $544 million and Uber Eats (delivery) only lost $12 million, and is on track to be profitable by the end of the year.

In a sign that things are returning to normal, mobility saw a 67% increase in bookings and delivery saw a 50% increase, off of an already high base. Uber also noted a 203% increase in airport journeys.

Globally, Uber does an average of 18 million trips a day. Management notes that it has been difficult to balance drivers' supply with riders' demand due to sporadic Covid lock downs. Both riders and drivers are their customers. A balance is needed so that riders don't wait too long for a car and drivers can make a good living from regular trips.

The company is well positioned to continue growing in the post-Covid world. Patient shareholders should do well owning this one.