Uber recorded a record number of rides in the second quarter of 2023 and achieved a revenue increase of 16 percent to 10.7 billion USD despite the economic downturn in the USA. This exceeded analysts' expectations of 10.6 billion USD. The net profit of 1 billion USD also surpassed market expectations of 659.5 million USD.
CEO Dara Khosrowshahi stated that the average number of rides booked by the 156 million monthly active users reached a record high in the three-month period ending June 30. "The Uber consumer has never been stronger," Khosrowshahi said. "We don't see any weakness or churn in any income group.
Uber's delivery division reported "healthy" order growth in the U.S. during the quarter. "Despite concerns about consumer spending on restaurants and deliveries, we are currently seeing no impact," he added.
These positive news come a day after fears of a slowdown in the US economy threw global markets into chaos, with technology companies being particularly affected.
Should macroeconomic conditions worsen, Khosrowshahi expects Uber’s ride-hailing business to remain strong. During such times, the number of drivers on the platform typically increases, which lowers prices and reduces wait times for passengers.
Uber's shares, which have risen by almost one-third over the past 12 months, opened about 5 percent higher on Tuesday.
The net profit, which increased by 158 percent year-over-year, was boosted by a revaluation of Uber's stakes in other companies, including the self-driving car company Aurora, by $333 million. The operating profit amounted to $796 million, slightly below the expectations of $799.8 million.
For the future, Uber expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the current period to be between $1.58 billion and $1.68 billion, with the average above analysts' expectations of $1.62 billion.
Companies in the gig economy like Uber and its US rivals Lyft and DoorDash are under pressure from investors to achieve sustainable profits after years of deep losses. Last year marked Uber's first full year of operating profit, a milestone the company referred to as a "turning point.
Chief Financial Officer Prashanth Mahendra-Rajah said Tuesday that Uber's "top priority" for the use of capital is to invest in growth, including potential acquisitions.
Here is the translation of the heading to English:
"Strong consumer demand in the last quarter was supported by Uber's efforts to make its delivery offerings more affordable, including merchant promotions on the platform, lower average delivery fees, and the expansion of more affordable products such as ridesharing. Improved economies of scale also reduced costs and increased profitability.
A growing advertising business also contributed to the increase in profitability, with the high-margin unit now reporting an annual "revenue run" of over 1 billion US dollars.
The total value of Uber's ride-hailing, delivery, and freight bookings rose 19 percent year-over-year to $40 billion, representing a slowdown from the 20 percent growth in the previous quarter and 22 percent in the period before that.
Excluding currency fluctuations, this combined total value would increase by 18 to 23 percent in the current quarter, in line with the long-term forecast Uber provided at its investor day in February.
As part of its growth plan, the company is pushing into new markets, including food delivery and the use of self-driving vehicles through partnerships with companies such as Waymo.
Uber is in "late-stage negotiations" with other global companies to integrate their self-driving car fleets into its platform.
Uber's growing grocery and retail delivery business has a "clear path to EBITDA profitability," the company said on Tuesday. Initial results from the partnership with Instacart, which allows users of the grocery delivery group in the US to order from restaurants on Uber Eats, have been "encouraging.
