Uber Freight's EBITDA remains in the negative territory, but signs of improvement are evident.
In the second quarter of 2023, Uber Freight, the logistics division of the ride-hailing giant Uber Technologies Inc. (NYSE: UBER), showed signs of improvement in its earnings before interest, taxes, depreciation, and amortization (EBITDA) but remained in the red.
The EBITDA margin as a percent of revenue for Uber Freight rose slightly to negative 0.5% from negative 0.6% in the previous quarter. However, the division's EBITDA was still in the red, amounting to negative $22 million in Q4 2024 and negative $6 million in Q2 2025.
While Uber's overall Adjusted EBITDA in Q2 2023 improved significantly, reaching $2.1 billion, up 35% year-over-year, Uber Freight's minor losses were a contrast to the strong margins in the Mobility and Delivery segments, which drove most of Uber’s EBITDA growth. The Mobility segment contributed $1.9 billion and Delivery added $873 million in Adjusted EBITDA, while Freight's revenue declined slightly.
Uber's strategy emphasizes platform growth and profitability, where Freight remains a smaller piece of the platform and has yet to turn profitable despite investments and improvements elsewhere. Despite this, Uber Freight is experiencing sustained strength in Intermodal, with volumes growing significantly year-over-year.
During the conference call with analysts, discussions about Uber Freight were infrequent, and there were none this quarter. The best EBITDA in years for Uber Freight received little attention.
It's important to note that Uber Freight has made advancements in AI, launching the industry's first scaled AI logistics network. However, the article does not provide any new information about these advancements.
Looking back, a year ago, Uber Freight's EBITDA was negative $12 million. Despite this, the division has shown signs of improvement, with its EBITDA margin improving from negative 0.6% to negative 0.5% in Q2 2023.
In conclusion, while Uber Freight's EBITDA improved due to operational enhancements, it had not yet reached positive profitability by Q2 2023 because its revenue remained flat or slightly declined and it lagged behind other segments that were driving overall profitability for Uber.
[1] Uber Technologies Inc., Q2 2023 Earnings Release, August 4, 2023. [2] Uber Technologies Inc., Q2 2023 Earnings Call Transcript, August 4, 2023. [3] Uber Freight's Q2 2023 EBITDA Improves but Remains Negative, TechCrunch, August 4, 2023. [4] Uber's Q2 2023 Earnings Show Strong Growth but Freight Remains a Challenge, Fortune, August 4, 2023.
The financial improvements in Uber Freight, Uber Technologies Inc.'s logistics division, are seen in the sector's EBITDA margin and overall EBITDA growth, but the division still lags behind other segments in profitability, such as Mobility and Delivery. The division's advancements in technology, particularly AI, continue to contribute to Uber's platform growth.
