By
Godfrey Benjamin
April 26th, 2024
On Tuesday, Uber released its Q2 2023 earnings report, posting a profit for the first time in its history. For the quarter that ended on June 30, Uber reported $9.2 billion in revenue, which is 14.3% higher compared to last year.
Uber Technologies Inc (NYSE: UBER) has reportedly started developing an AI-powered chatbot that will be integrated into its app. The company has not revealed specific details about the launch of the chatbot but has ensured that it will improve customer experience. Most probably, the chatbot will be able to follow a customer’s specific instructions on the destination.
As Uber CEO Dara Khosrowshahi has stated, the company has been utilizing AI technology and machine learning systems for years now.
Dara Khosrowshahi explained:
“We have been working with machine learning, artificial intelligence systems for years and years. Every time you get matched up with a car or a courier, there are algorithms making that happen, from the time of day, distance, all of that is driven by machine learning.”
Uber’s initiative demonstrates the company’s commitment to keeping pace with the times and leveraging cutting-edge technologies. Notably, its delivery rivals – DoorDash Inc. and Instacart Inc – are also working on developing AI-powered chatbots. DoorDash is currently testing “DashAI,” which allows consumers to ask specific questions and receive restaurant recommendations. Meanwhile, “Ask Instacart” leverages Instacart’s own AI models to create a data catalogue that encompasses a billion shoppable items across more than 80,000 retail partner locations.
Uber Posts First-Ever Profit
On Tuesday, Uber released its Q2 2023 earnings report, posting a profit for the first time in its history.
For the quarter that ended on June 30, Uber reported $9.2 billion in revenue, which is 14.3% higher compared to last year. Besides, it posted a $326 million operational income.
Uber’s gross bookings saw a 16% increase year-over-year to $33.6 billion, or 18% on a constant currency basis. Mobility gross bookings have grown to $16.7 billion, and delivery gross bookings reached $15.6 billion. The number of Uber trips has also grown by 22% year-over-year to 2.3 billion, or approximately 25 million trips per day on average.
Dara Khosrowshahi said:
“Robust demand, new growth initiatives, and continued cost discipline resulted in an excellent quarter, with trips up 22% and a GAAP operating profit, for the first time in Uber’s history. These results also translated into strong driver and courier engagement, with 6 million drivers and couriers earning a record $15.1 billion during the quarter.”
Being in operation since 2009, Uber has disrupted the traditional taxi industry. The company has been expanding non-stop to get the trust of millions of people worldwide. However, despite its widespread popularity and market dominance, Uber has never turned a profit. Among the reasons behind the lack of financial success are the multiple acquisitions Uber has made, its legal issues, and competition.
Now, since Uber has started encompassing AI, things might change. Integrating an AI-powered chatbot will definitely be profitable, Uber might see the results of its research work as soon as the next two quarters.