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Uber said Tuesday that revenue increased 29% in the most recent quarter, benefiting from a series of investments in new services and the continued return of drivers to the ride-hailing business.
The company said it generated $8.8 billion in revenue, which is broadly in line with investor expectations. Uber’s gross bookings (the amount customers paid) was $31.4 billion, up 19% from a year ago.
Uber said it is on track to generate quarterly earnings from strong operational strength this year.
Uber CEO Dara Khosrowshahi said in a statement, “Our global scale and geographic density mean we have a small footprint in both driver preferences and the breadth of mobility products we offer consumers. Increasingly separated from larger regional competitors.
Why it matters: Uber provides further evidence of the tech industry’s resilience.
Uber’s strong performance comes on the heels of strong performances by technology companies such as Microsoft, Google’s parent company and Meta.
Uber continues to recover from slippage during the pandemic that laid off thousands of employees. The company has since avoided the mass layoffs it has done at other tech companies, but on Tuesday, its overall headcount fell to $10,000 after layoffs at Uber-owned alcohol delivery platform Drizly and its cargo business. said to have decreased.
Uber says its U.S. and Canadian ride-hailing business, which has been slow to recover from the pandemic, is now growing rapidly, with rides in those regions up 40% from a year ago. The company said lower fares contributed to its growth. Uber has invested heavily in financial incentives to bring drivers back onto the platform. Now, drivers’ income is also increasing, the company said.
Background: Uber is focused on driver incentives.
Uber’s main competitor, Lyft, did not invest heavily in bringing drivers back to its platform after the pandemic lockdown. With fewer drivers on the road, their prices have risen.
Uber offers more services than Lyft, including partnerships with taxis and a ride-sharing business. Bookings from products outside of his flagship UberX ride-hailing business have increased more than 100% year-over-year, according to the company.
Uber’s delivery business has grown much more slowly than its ride-hailing service, but has seen an 8% increase in bookings from a year ago. The company’s freight business has shrunk by 23%, which the company attributes to the difficult economy.
Overall, Uber lost $157 million, moderated by gains from investments in other companies.
Next steps: Lyft reports quarterly results.
After layoffs and a management change, Lyft is set to report its own results on Thursday. The company cut his 26% of its workforce and appointed a new chief executive.
