April 23, 2024
Uber business

Even high gas prices and skyrocketing inflation aren’t stopping Uber business recovery from the worst days of the pandemic.

Uber ( UBER ) said on Tuesday that its revenue for the three months ended in June reached $8.1 billion, more than double from a year ago as more customers subscribed to the ride-sharing service. Let’s turn.

The company said in its quarterly earnings report that the number of users and drivers using its platform is “at an all-time high.” Uber registered 122 million people using its platform each month, up 21% from last year.

Perhaps most surprisingly for a company with a history of substantial losses, Uber said it was cash-flow positive, meaning it spent more money on its operations, excluding capital expenditures, which Usually includes property and other physical assets. The company said it generated $382 million in free cash flow during the quarter.

But Uber remained unprofitable in large part because of its investments. Uber posted a net loss of $2.6 billion, most of which ($1.7 billion) was related to its investments in other international ride-sharing businesses such as Didi and Grab. (Didi, in particular, is under a lot of regulatory pressure in China.)

Uber’s business offers a unique window into consumer trends more than two years into the pandemic, which initially killed demand for rides (hurting Uber Rides’ business) and the adoption of online food delivery. Accelerate (helping your Eats business) During the last quarter ended in March, the company reported that its travel bookings surpassed pre-pandemic levels, with delivery bookings up 12% year-on-year.

Uber continues to push its delivery offerings. Late last month, Uber business announced a new grocery ordering service. While grocery ordering through Uber Eats has been available on the platform for two years, the update includes new options to encourage usage, such as advance delivery scheduling, live order tracking, and meal replacement recommendations.

Uber CEO Dara Khosrowshahi said in a statement accompanying the results on Tuesday that the company “achieved balanced growth” and did so “on a platform that is larger than ever, in terms of number of users and wage earners.” With Uber usage now at an all-time high.”

“No one wants a tough economic environment or high inflation that affects many of us, including Uber drivers,” Khosrowshahi added in a conference call with analysts on Tuesday. Allowed to show his power.

Uber shares rose more than 15 percent in early trading Tuesday after the results.

Uber’s results come as much of the tech industry resorts to job freezes and layoffs to combat rising inflation, rising interest rates, fears of a looming recession and the fallout from the war in Ukraine. Face the crisis.

Khosrowshahi told staff in May that the company would cut costs and overhaul its hiring practices amid a “seismic shift” in the market. On Tuesday’s call, Khosrowshahi emphasized that the company can be proactive with its spending and is growing. He also noted that Uber benefits not only from its size, but also from the range of its business offerings.

“When you look at the competitive environment, it’s the strongest we’ve felt globally competitively since I started at Nielsen and probably here,” Khosrowshahi said of himself and the company’s chief financial officer, Nielsen. said, referring to Chai. Khosrowshahi has been at the helm of Uber since 2017.

In a startling departure from the per-cost model of growth that Uber popularized years ago, Khosrowshahi also noted, “You can’t outspend any business for its glory.”

Khosrowshahi said Uber has been able to “apply discipline” as it improves the platform to better serve drivers. This includes improved onboarding to make it easier for workers to check in and an easier way to toggle between driving and delivering. “Right now, the machine is working,” he said.

Last week, Uber business announced that it would expand its fare-advance feature to more cities in the United States to give drivers more information about earnings and customer fortunes. Institution before accepting a trip. Khosrowshahi said on the call that the feature is one of the biggest requests from drivers, while noting that “a lot of algorithmic work needs to be done to accurately price that ride.”

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