Uber Technologies announced on Wednesday its plan to repurchase up to $7 billion worth of company shares. It will be its first-ever buyback program following a robust rebound in its ride-share revenue and strong demand for its food delivery services. 

Surge in Free Cash Flow of Uber

 Uber CFO Prashanth Mahendra-Rajah noted that the authorization of the company's first-ever share repurchase program "is a vote of confidence in the company's strong financial momentum," Reuters reported.

Uber anticipates its gross bookings growth to be in the mid to high teens percentage in the next three years and its adjusted core profit growth to be in the high 30s to 40%.

Uber posted the company's first annual net profit last week since it went public in 2019, reporting free cash flow of $3.4 billion last year, up from $390 million a year earlier.

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Share Repurchase Program of Uber

The company's executives said they look forward to making buybacks consistent over time. 

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

Uber is hosting a virtual Investor Update scheduled for February 14 at 5 a.m. Pacific Time (8 a.m. Eastern Time), where the company's executive leadership team will unveil an updated perspective on the company's strategy, financial framework, and capital allocation plans, followed by a Q&A session. 

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