Uber Inc. doubled quarterly revenue, improved its financial performance, and said high inflation was causing more people to drive for the platform to help offset rising household costs.
Uber’s ride-hailing bookings drove much of the top-line growth in the most recent quarter, as company ends quarter with record number of drivers and food-delivery couriers
Uber said that revenue grew 105% to $8.07 billion for the three months through June.
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Uber posted adjusted earnings,
a figure that excludes some expenses—of $364 million, its strongest ever. Both figures beat Wall Street expectations.
CEO D. Khosrowshahi said decades-high inflation was showing little impact on customers using the company’s services. “The marketplace looks strong,” he said on an earnings call.
There are indications that factors such as rising grocery costs are causing individuals to become Uber drivers to offset the pressure on their wallets, he added. “Over 70% of drivers say inflation has played a part in their decision to come on to the platform,” he said.
The company also said it generated free cash flow of $382 million in the quarter. It was the first time Uber generated free cash flow from its underlying operations and not on the basis of a one-time adjustment—a goal it had promised investors.
- Shares of Uber advanced more than 13% in early Tuesday trading.
After enduring the pandemic, ride-share companies like Uber and Lyft are now facing a new world of high inflation, driver shortages, and dwindling passenger numbers.
The company forecast the total value of bookings on the platform to be between $29 billion and $30 billion in the September quarter, in line with Wall Street’s forecast of $30 billion and broadly on par with the $29.1 billion in the June quarter.