After its first profitable year, Uber has announced its first-ever $7 billion share buyback program

Uber stated that in response to a robust rebound in ride-sharing and robust demand at its food delivery operation, it will buy back up to $7 billion worth of company shares for the first time ever.

The ride-hailing company projects adjusted core profit growth in the high 30s to 40% and gross bookings growth in the mid-to high teens percentage over the next three years.

The firm said that it expects free cash flow to be 90% or more of adjusted profits before interest, taxes, depreciation, and amortisation on an annual basis.

The ride-sharing sector had a significant upswing after the epidemic as individuals began to venture outside more and workers were required to return to their workplaces. Uber's market worth more than doubled last year as a result of it.

Last Monday, Uber revealed its first yearly net profit since going public in 2019. Uber increased its free cash flow from $390 million to $3.4 billion in 2023.

(Sources: investing.com, reuters.com)