Bill Ackman Invests in Uber as the Company Shifts Towards Profitability.

Ackman’s fund starts acquiring Uber shares as the stock rises and the business model evolves, bolstered by robust financial results reported for twenty twenty-four.

Bill Ackman, a notable investor, recently revealed that his investment fund started acquiring shares of Uber in January 2025 and currently possesses thirty million shares.

Ackman expressed that his fund views Uber as one of the best-managed companies globally and believes it is currently available at a substantial discount.

After his announcement, Uber’s stock rose by six and a half percent, and year-to-date, it has increased by twenty-five percent, in contrast to a four percent rise in the Nasdaq index.

Uber reported that its annual order volume for 2024 grew by eighteen percent, reaching forty-four billion dollars, with taxi orders contributing twenty-two point eight billion dollars and food deliveries adding twenty point one billion dollars.

The company achieved revenues of twelve billion dollars, marking a twenty percent rise from 2023, while its operating profit climbed by eighteen percent to seven hundred seventy million dollars.

The net profit amounted to nine point eight billion dollars, with about seven billion dollars coming from tax benefits and stock revaluations.

In light of these financial results, Uber announced a share repurchase program, noting a share price of seventy dollars and a market capitalization of one hundred forty-seven billion dollars.

Uber's evolution from a loss-making tech company to a profitable provider of ride-hailing and food delivery services has been driven by strategic cost management.

The company exited several international markets, shut down its autonomous vehicle division, scaled back its truck business, and significantly reduced its research and development spending.

Furthermore, the average ride price on Uber increased by sixty-three percent from 2019 to the second quarter of 2022.

Though prices have dropped by eight percent from their peak since then, they remain fifty-two percent higher than in 2019.

Simultaneously, Uber raised the commission rate it takes from drivers from twenty point seven percent in the last quarter of 2019 to twenty-seven point one percent in the last quarter of 2024.

These changes underscore Uber’s strategic restructuring and its effective shift toward profitability, factors that have enhanced investor confidence and influenced Bill Ackman’s recent investment choice.