Surge

Uber posts record revenue as the summer travel surge and gas avoidance rev up ride-hailing demand

Wednesday, August 3, 2022 by Robinhood Snacks |

Rise of WFU… work from Uber. Summer getaways and high gas prices have gifted Uber a five-star quarter. Uber shares surged 19% yesterday after the ride-hailer more than doubled its revenue to a record $8B last quarter, crushing expectations.

  • Backseat bliss: A record 122M riders and drivers used the app each month, fueling Uber’s first cash-flow-positive quarter.
  • Cold cuts: Uber’s delivery biz (mainly UberEats) grew 12%, but growth slowed from the year before as people ditched doorstep deliveries for boozy brunches.
  • Billion-dollar binge: Uber lost $2.6B on startup investments like Zomato and Grab, but execs say the overall biz is in its strongest position in years.

Looking for your UberX… in a sea of Camrys. From festival szn to IRL work happy hours, more consumers are turning to ride-hailing as outings return. Uber introduced a fuel surcharge in March to combat high pump prices, but it didn’t stop riders from splurging on private drivers. In May, Uber made an average of $87/per customer each month, a 60% jump from 2020.

THE TAKEAWAY

Don't lose sight of your core biz… even when it falls through. While Eats was Uber’s MVP during the pandemic, its hailing biz has finally caught up. Uber’s ride segment finally surpassed Eats revenue in the first quarter and continued the trend in Q2. Now Uber’s recruiting new drivers ahead of a busy fall season by adding highly requested driver features like the ability to see fares up front. We’ll see whether the ride rebound is as strong for Lyft when it reports Thursday.