Uber Technologies Inc. has exceeded Wall Street estimates for its second-quarter results, experiencing a 5% increase in the company’s shares, driven by sustained demand for its ride-sharing and food delivery services.
With more people returning to offices and venturing out of their homes, the demand for ride-sharing has seen a significant boost in recent months, benefiting companies like Uber and its competitor Lyft. “Mobility had a standout second quarter, growth was consistent across use cases and geographic strength was led by LatAm and APAC, in particular Brazil, Australia, and India,” Uber CEO Dara Khosrowshahi said.
Trips facilitated by self-driving vehicles on Uber’s platform increased sixfold during the quarter, thanks to partnerships with companies like Alphabet’s Waymo, which handled rideshare and food delivery, and startup Waabi, for freight services.
For the second quarter ending June, Uber reported a 16% increase in revenue to $10.70 billion, surpassing analysts’ expectations of $10.57 billion. Gross bookings also rose 19% to $39.95 billion, beating the forecasted $39.68 billion, according to LSEG data.
The company posted a profit of 47 cents per share, outpacing estimates of 31 cents. Revenue from Uber’s ride-sharing segment, its largest, increased 25% to $6.13 billion, exceeding the expected $5.94 billion. The delivery business reported revenue of $3.29 billion, slightly below the anticipated $3.32 billion.
“While there have been some concerns about consumer spending on restaurants and delivery, we are not seeing any impact today,” Khosrowshahi noted, highlighting that Uber’s expanded partnerships with Instacart and Costco Wholesale are bolstering grocery deliveries.
Looking ahead, Uber forecast third-quarter gross bookings between $40.25 billion and $41.75 billion, with the midpoint slightly below analysts’ estimates of $41.26 billion. The company projected adjusted core earnings between $1.58 billion and $1.68 billion for the third quarter, in line with the estimated $1.62 billion. In response to Uber’s strong performance, Lyft’s shares also rose nearly 2%, with the company set to report its quarterly results on Wednesday.
