Why It Matters: Uber offers more evidence of tech industry resilience.
Uber’s strong financial results come after encouraging performances from tech companies like Microsoft, Google’s parent company and Meta.
Uber has continued to recover from a slide during the pandemic, when it laid off thousands of employees. The company has since avoided the mass layoffs that have taken place at other tech companies, though it said on Tuesday that its overall head count was down after cuts at Drizly, an alcohol delivery platform owned by Uber, and in its freight business.
Uber said its U.S. and Canadian ride-hailing businesses, which had been slow to recover from the pandemic, were now growing faster, with trips in those regions up 40 percent from a year ago. The company said lower fares had helped with that growth. Uber invested heavily in financial incentives to get drivers back on its platform. Now drivers’ earnings are also increasing, the company said.
Background: Uber focused on incentives for drivers.
Uber’s main competitor, Lyft, did not invest as heavily on getting drivers back to its platform after pandemic lockdowns. With fewer drivers on the road, its prices have gone up.
Uber also has more products than Lyft, including partnerships with taxis and a shared-ride business. Bookings from products beyond its flagship UberX ride business grew more than 100 percent from a year earlier, the company said.
Uber’s delivery business grew far more slowly than ride hailing but still managed 8 percent growth in bookings from a year ago. Its freight business shrank 23 percent, which the company attributed to the challenging economy.
Overall, Uber lost $157 million, cushioned by gains in its investments in other companies.
What’s Next: Lyft reports its quarterly results.
Lyft, which has undergone layoffs and leadership changes, will report its own financial results on Thursday. The company just cut 26 percent of employees and named a new chief executive.