Ride-hailing giant Uber has reported a 14% increase in revenue for the outgoing quarter, signaling a steady recovery from the pandemic-induced downturn.
Although the growth was slower compared to previous quarters, where riders returned to pre-pandemic habits, the company still posted a revenue of $9.2 billion for the quarter ending in June. However, this figure fell short of Wall Street’s expectations.
Despite the revenue not meeting expectations, there were positive indicators for Uber’s financial performance. The number of trips taken by riders surged by 22% during the quarter, showing an increase in demand for the service.
Additionally, Uber achieved its first-ever unadjusted operating profit, totaling $326 million, and recorded a remarkable quarterly free cash flow of $1.1 billion.
Uber’s gross bookings, which represent the amount riders paid for services, also grew by 16% year on year, amounting to $33.6 billion. The company experienced a 22% increase in trips during the quarter, reaching 2.3 billion, equivalent to approximately 25 million trips per day on average.
CEO Dara Khosrowshahi expressed satisfaction with the company’s performance, attributing the strong results to robust demand, new growth initiatives, and continued cost discipline. He also highlighted the positive impact on driver and courier engagement, with 6 million drivers and couriers earning a record $15.1 billion during the quarter.
Following the release of the financial results, Uber’s shares rose by approximately 4% in pre-market trading, as the company provided optimistic guidance for the current quarter. This surge continued a trend of strong stock performance for Uber, with its shares doubling since the beginning of 2023.
Comparatively, Uber’s pandemic recovery has outperformed its chief rival, Lyft, according to CNN. Lyft is set to unveil its quarterly earnings in the following week, shedding further light on the state of the ride-hailing industry as it emerges from the pandemic’s challenges.