Uber Says It Will Become Profitable Next Year, Boosted By $2.65 Billion Postmates Acquisition

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Uber’s CEO says the deal can help the ridesharing giant finally achieve profitability.

“We’re very confident we’re going to get to profitability next year and we have enough of a diversified portfolio to make that statement with quite a bit of confidence,” Uber CEO Dara KhosrowshahiUber’s stock has risen 7% since the company on Monday announced that it would buy food delivery service Postmates in an all-stock transaction,The deal merges the fourth-largest U.S.

Uber said in January that it expected to turn a profit on an Ebitda ; basis by the fourth quarter of 2020, but withdrew its guidance in May after the coronavirus pandemic wreaked havoc on the economy and led to business shutdowns. While Uber Eats bookings more than doubled in the second quarter amid higher demand during the pandemic, Uber’s core ride-sharing business has slowed dramatically. including Texas and Florida with many now pausing reopenings or reimposing lockdowns altogether—that’s bad news for Uber, which sees about 25% of its rides coming from commuters going to work, according to a report from BTIG last week.

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