UBER has announced an inaugural $7bn (£5.6bn) share buyback programme after the ride-hailer reported its first-ever annual operating profit last week.

It comes following tech giant Meta announcing a first dividend for investors in early February and Airbnb widening its own repurchase scheme.

Prashanth Mahendra-Rajah, Uber's chief financial officer, said the "firstever share repurchase programme is a vote of confidence in the company's strong financial momentum."

"We will be thoughtful as it relates to the pace of our buyback, beginning with actions that partially offset stockbased compensation, and working towards a consistent reduction in share count."

After years and billions worth of losses, the ride-hailing giant has consistently reported an operating profit in its results this year.

Uber's chief executive said last week that 2023 was an "inflection point" for the company. Uber is forecasting gross bookings growth in the mid to high teens in the next three years, with adjusted core profit growth in the high 30s to 40 per cent.

(c) 2024 City A.M., source Newspaper