Updated May 11, 2018 11:27:55Uber has doubled its revenue and profit this year, despite facing new competition and increasing competition from rival ride-hailing company Lyft, according to the latest quarter financial results.
The ride-sharing company reported a record fourth-quarter profit of $US7.4 billion ($8.1 billion), up 12 per cent from a year earlier.
Uber’s share price rose $US1.05 to $6,100 on the Nasdaq, its highest level since it launched in 2014.
Wayfair, the Australian arm of Uber, also rose by $US2.10 to $3,500.
WayFair said it had achieved a record increase in revenue of $4.2 billion, or 7 per cent.
It said its revenue rose by 16 per cent year-on-year to $US8.7 billion ($10.3 billion).
It also saw its net loss fall by $1.4 million to $941 million ($2.7 million).
The company also beat analyst expectations for a fourth-straight quarter of growth, although it has been criticised for not being profitable enough to stay afloat.
“We’re now in a position where we’re looking at a significant opportunity for the future,” CEO Travis Kalanick said.
“The challenge now is to continue to build a competitive team, build out our team, and build out a business model that can continue to deliver on the promise of being the Uber of tomorrow.”
Wayfair’s profits are also boosted by $2.5 billion ($2 billion) in cash on hand and the addition of additional employees.
Kalanick said the company’s total costs have risen by $6.1 million ($7.7 in the past three months) from the previous quarter, mainly due to a restructuring and cost reduction programme, including $1 million for its office relocation.
He also said that he was expecting to have a better than expected return on equity from the sale of the assets in the next quarter.
“Our long-term operating plan is to grow revenue at a very reasonable rate and generate a long-lasting return on our investments,” Kalanicky said.
But critics of the ride-hire company say it’s too early to tell how its future will look.
“I think it’s very clear that the ride share market is very, very competitive and there are only a few places where Uber’s business is actually going to be viable,” Michael McBride, head of research at tech firm iSuppli, told ABC News.
“Uber has been a little too slow to realise the opportunity that this ride share opportunity presents.”
The company’s stock has rallied over the past year, and now sits at about $US100 a share, up from $US57 in the second quarter.
Uber was founded in 2012 as a ride-share platform, but was later bought by ride-booking company Didi Chuxing for $US10 billion.
It also has a partnership with ride-service operator Lyft, which provides ridesharing and other services, as well as its own app for iOS.
Uber and Lyft have faced increasing competition and have both seen a number of rivals, including Apple and Lyft, launch their own ride-driving services.
Uber is now working on a self-driving car technology that will allow it to cut costs and boost profitability by using artificial intelligence and sensors to navigate around traffic and navigate on foot.
But Uber has faced criticism for being too expensive to operate and for taking on too many drivers, while Lyft has faced accusations that its drivers are being overpaid.
Uber has also had a series of controversies over the last few years.
The company lost more than $US150 million in its first two quarters of 2016.
It also recently suspended a driver for allegedly sexually harassing a passenger and issued a recall for a series the company said were “non-existent”.
The ride sharing service has also been accused of misleading customers about the cost of their trip and of offering too little or no information on safety features.
In January, the Federal Court ruled that Uber was not liable for claims it made about its safety and security policies and that Uber drivers had to report serious crimes.