Why it matters: Uber offers more evidence of the tech industry’s resilience.
Uber’s strong financial results are the result of encouraging performances from technology companies such as Microsoft, the parent company of Google and Meta.
Uber has continued to recover from a slide during the pandemic, as it laid off thousands of employees. The company has since avoided the mass layoffs that have occurred at other tech companies, though it said on Tuesday that its overall workforce had fallen following 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 have been slow to recover from the pandemic, are now growing faster, with rides in those regions up 40 percent from a year ago. The company said lower rates had contributed to that growth. Uber has invested heavily in financial incentives to get drivers back on its platform. Now the income of drivers is also increasing, according to the company.
Background: Uber focused on driver incentives.
Uber’s main competitor, Lyft, hasn’t invested as heavily in getting drivers back to its platform after pandemic lockdowns. With fewer drivers on the road, prices have risen.
Uber also has more products than Lyft, including partnerships with taxis and a rideshare company. Bookings from products beyond the flagship UberX ride-hailing company grew more than 100 percent from a year earlier, the company said.
The company said it was confident about its rivalry with Lyft.
“They want competitive pricing with us and we think that creates a competitive environment where we compete by brand,” said Mr. Khosrowshahi on a phone call with investors.
Uber’s delivery business grew much slower than ride-hailing, but still managed an 8 percent year-over-year growth in bookings. Freight business contracted by 23 percent, which the company attributed to the difficult economy.
In total, Uber lost $157 million, offset by gains from 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 Thursday. The company just cut 26 percent of its workforce and named a new CEO.
