Uber heads for first annual profit, undeterred by pay laws

afr.com:

Uber chief executive Dara Khosrowshahi has declared pay laws will not hold the gig economy giant back. It can even cope with European markets where drivers are employees, Mr Khosrowshahi told investors on an earnings call overnight.

“We can operate under any regulatory framework,” Mr Khosrowshahi said.

Uber global chief executive Dara Khosrowshahi in the company’s Sydney office last October. Louie Douvis

This is the new face of Uber, the dominant gig economy company that is now throwing off cash, delighting investors who have pushed its stock up 95 per cent this year. The stock was 2.8 per cent higher to $US49.47 at 2.03pm in New York.

Uber had net income of $US221 million ($343 million) for the quarter – income from operations was $US394 million – and when the year is up it expects to report an annual profit for the first time ever.

“Our category position reached all-time highs in Australia,” Uber crowed about its delivery business, confirming The Australian Financial Review reporting that it is a “crown jewel” of the business.

But at the same time Uber has been issuing dire warnings of huge price rises should new legislation proposed by the Albanese government to give gig economy workers similar rights to other employees pass parliament.

It is a hard needle to thread.

The news: For years commentators including former Magellan boss Hamish Douglass wondered if Uber, which was built with vast amounts of venture capital money that let it offer nicer services at cheaper prices than its hire car and taxi competitors, would ever make money. The company’s quarterly results, released in the early hours of Wednesday AEDT, answer that question. Its gross bookings were up 21 per cent to $US35.3 billion for the quarter, producing