Tech Rundown: Uber's having a moment

Hello there,

Here’s today’s tech rundown — everything you need to know from the world of tech in 3 minutes!

In today’s email:

• Uber goes into high gear

• Mental health for students gets $7m

• Best TV shows of the year

The Lead Story

Uber is accelerating in 2023, showcasing an impressive resurgence. The ride-hailing giant has seen its stock surge 130% this year, with a remarkable 25% uptick in the last 30 days alone.

Perhaps the biggest sign the company is entering a new phase, is that in Q2 this year Uber reported its first ever profitable quarter. Sure it took some time, and $25 billion in investments, but patient investors are now reaping the rewards.

So what led to this turnaround?

Market: For starters, Uber operates in a growth market. Reports note that ride-sharing is set to increase 15% annually between 2022 and 2030. Their most recent quarter seems to affirm this trend, as it saw 15% growth in monthly users and 25% growth in trips YoY — significant given their existing size.

Strategy: Uber's shift from founder Travis Kalanick to experienced executive Dara Khosrowshahi also propelled it in the right direction. The company made deft moves by investing in adjacent areas such as food delivery, shedding non-core assets (VTOL aircrafts, self driving), and conducting a much-needed corporate rebrand.

Expansion: Uber's expansion into additional services, such as partnering with London's black cabs, introducing a package return service, testing a Task Rabbit competitor, and even offering hot air balloon rides, highlights its innovative streak.

While not all ideas will be blockbuster hits, small percentage gains add up at scale!

Competitors: As Uber grows its competitors stumble. Lyft, its closest rival in the US, faces challenges like a declining share price, executive change, and discussions about a possible sale. They’ve also failed to diversify in both product and locations (Lyft only operates in the US and Canada).

As a result, Uber now commands a 74% share of the ride-hailing market, up from 62% in 2020.

The cherry on top of a memorable year? Joining a new club: The recent addition to the S&P 500 not only led to a 5% boost in the company's stock but also solidified its optimistic prospects.

More Tech News

Spotify Shuffle: Spotify slashes 1500 jobs (17% of workforce) as they try to reduce costs and improve profits (more)

AI Governance: Lawmakers in Brazil unwittingly passed the nation's first legislation written entirely by artificial intelligence (more)

Multi-Threaded: Threads set to expand into Europe, reaffirming Meta’s commitment to the fledgling app (more)

Tier Drop: Scooter startup Tier, once valued at $2b, lays off over 20% of employees in an effort to improve financial position (more)

1.7 Billion: ChatGPT has an astounding 1.7 billion users, only 12 months after the chatbot was publicly released (more)

Startup Fundraising

Ursa Major builds rocket propulsion systems for space transport. Currently working with the US Air Force, and raised $138m (more)

Prelude is developing a supply chain solution for the cannabis industry that is powered by AI. Raised $5m (more)

Mummolin is looking to decentralise bitcoin mining. Raised $6m (more)

WeeFin helps financial institutions comprehend, oversee, and comply with ESG requirements. Raised $8m (more)

Clayful connects students with a mental health expert in under a minute. Raised $7m (more)

Conduit looks to digitize accounting in the film and media industry. Raised $1m (more)

BioFluff hopes to redefine luxury textiles, ditching fur for innovative plant-based fabrics. Raised $2m (more)

Useful Sites

Pixabay: Access to 4 million royalty-free images

Eat This Much: Personalized meal plans based on one’s calorie range

Boring Cash Cows: (Seemingly) simple businesses that make money

Chart of the Day

Spotify’s P&L (which will likely increase soon)

Distractions

• Best TV shows this year

• Do you tip more or less than the average American?

• A $500 million mistake

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