San Ramon, Calif.: Uber’s ride-hailing service is regaining the momentum it lost during the pandemic.
Plus, its delivery service is still growing at a brisk pace, indicating that some homely habits may be here to stay, even as people are moving out again.
Those two trends produced Uber’s best-ever quarterly report since the pandemic shut down the San Francisco company 17 months ago.
The results announced on Wednesday for the April-June period included a rare gain. But it stems from a $1.4 billion one-time gain to recognize the recent rise in the values of Uber’s stakes in China’s leading ride-hailing service, Didi, and a self-driving car division that Silicon Valley startup recently acquired. , was handed over to Aurora. .
Those accounting adjustments eclipsed Uber’s ongoing losses in its business, allowing the company to post a second-quarter profit of $1.14 billion, or 58 cents a share, from $1.78 billion in the same three-month period of 2020. The loss occurred. Pandemic havoc.
Total revenue for the quarter stood at $3.93 billion, more than double the dismal situation at the same time last year, when most people were still stuck at home with nowhere to go looking for a ride. The revenue figure exceeded estimates of $3.76 billion among analysts surveyed by FactSet Research.
In an even more visible sign of progress, Uber delivered 1.51 billion rides during the quarter, up 105% compared to the same period last year. Despite that huge jump, total rides for the period were still about 10% lower than the numbers given at the same time two years ago, before the pandemic took a toll on the economy.
The company’s ride-hailing revenue also more than doubled from last year to $1.62 billion. In addition to offering more rides than last year, Uber’s prices are also rising. This is partly because the company is ultimately trying to turn a profit, but also because it has more paying drivers as it tries to lure more of them behind the wheel and travel around the world to increase its income. responds to increasing pressure from governments.
As it has been doing in recent quarters, the service that Uber built to deliver take-out meals and groceries is bringing in even more money. The company’s distribution revenue was about $2 billion, more than double the year before.
Uber CEO Dara Khosrowshahi predicted that progress would continue through the last half of this year, as more people ride more and more drivers are willing to provide or deliver them. In the US alone, Khosrowshahi said the number of ride-hailing drivers and delivery couriers has increased by about 420,000 since February.
In a sign of confidence, Khosrowshahi reiterated a previous promise that Uber would be profitable on an operating basis during the last three months of the year under an unconventional measure called adjusted earnings before interest, taxes, depreciation and amortization. Watched closely by some investors, Uber lost $509 million during the most recent quarter, down from a loss of $837 million in the same period last year.
Despite a generally upbeat earnings report, shares of Uber Technologies Inc. fell nearly 6% in after-hours trading.
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