Uber to become profitable

Uber was one of the poster-boys of the high growth/high losses approach of growth-stage venture capital of the last 10 years. Therefore it is worth noting that Uber is committing to become GAAP profitable (which includes costs for share-based compensation) on a quarterly basis this year.

Finally, we expect capital discipline will prove to be a decisive factor in improving growth and profitability outcomes for Uber. As investors raise the bar on earnings quality, we expect to deliver on these expectations—with quarterly positive GAAP operating income this year. In contrast, we are only beginning to see some (but not yet all) competitors pivot to profitability, and we expect this transition will gain traction across the industry over the coming quarters.

Author: Henrik Torstensson

Partner at Alliance VC. Investing in Nordic early-stage tech startups.

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