‘Why can’t we?’: Uber’s plans to disrupt new industry as revenue rises 14 per cent

Uber’s boss has revealed plans to “go after” a new market as the company posted a 14 per cent rise in revenue and its first ever quarterly operating profit.

Uber, best known for disrupting the taxi industry, now has another industry in its sights.

The rideshare giant wants to become a bigger player in the tourism sector, specifically competing with tour operators.

“Travel is a very important ecosystem for us, both in terms of pick-ups and drop-offs, so we said ‘hey, why can’t we go after this tour operator market?’” Uber CEO Dara Khosrowshahi said.

“Essentially, we are building up services that we think rival traditional tour operators with, what I would call, the Uber delight: we already know who you are, we know your identity, we know your payment.”

In May, Uber launched a new feature where people in the UK can book flights on the app.

They can already book boats, trains and buses through the Uber app over there.

Uber wants to disrupt the tour operator market. It launched flight bookings in-app for people in the UK this year. Picture: Peter Summers/Getty Images

Uber told news.com.au there were no immediate plans to introduce flight bookings via the app in Australia just yet.

In November last year, Uber Australia launched a feature where you can reserve airport pick-ups with Uber flight tracking technology monitoring delays, and introduced the option to sync your Google and Microsoft email accounts to load your travel plans (like flights and accommodation bookings) into the app.

Mr Khosrowshahi’s comments about wanting to rival traditional tour operators come as the company reported a surprise profit on Tuesday, pointing to strong growth in its core mobility and delivery businesses despite missing revenue estimates.

Profits for the second quarter ending June 30 were $US394 million ($595m), compared with a loss of $US2.6 billion ($3.9b) in the year-ago period.

Uber CEO Dara Khosrowshahi. Picture: Kevin Dietsch / Getty Images via AFP

The results included the company’s first-ever quarterly operating profit. Its results were also boosted by a gain in Uber’s equity investments.

Revenues rose 14 per cent to $US9.2 billion ($13.9b), but stood below the $US9.3 billion ($14b) expected by analysts.

The company scored sharp increases in revenues tied to customer rides and delivery, more than offsetting declines in its much smaller freight business.

“People are buying more services,” Mr Khosrowshahi said of the fall in freight.

“But our mobility and delivery businesses are growing at huge rates and larger than ever.”

Mr Khosrowshahi also cited “cost discipline” as a driver, with general and administrative expenses down sharply from the year-ago period.

– with AFP