Business

Uber raises first-quarter earnings guidance on strong ridership

Uber said its ride-hailing business has recovered from the Omicron slowdown faster than expected as airport rides increase and more offices open.

The company also said customers continued to order groceries at a high rate in February.

Shares of the ride-hailing company are up about 5% in premarket trading, with its smaller competitor Lyft also gaining.

Uber said in a filing it now expects adjusted earnings before interest, taxes, depreciation and amortization to be between $130 million and $150 million for the first three months of the year, up from $100 million to $130 million it previously forecast would have.

“Our mobility business is recovering from Omicron much faster than we anticipated,” said Dara Khosrowshahi, Uber’s chief executive. He said consumers are eager to book rides for travel, commuting or nightlife.

Dara Khosrowshahi smiles during an interview
Uber CEO Dara Khosrowshahi said gross bookings for airports rose 50% in February.
Bloomberg

Khosrowshahi, who recently broke the news when he said Uber would accept bitcoin as payment in the future, said gross bookings for airports, which are among the most profitable routes for Uber, rose over 50% mom in February and on the rise in the coming travel season to be one of the strongest ever.

Several companies are also bringing employees back into offices over two years after the pandemic forced many to work from home.

During the peak of the pandemic, Uber’s delivery business thrived as consumers became more dependent on ordering groceries and groceries online.

A closeup of the Uber logo on a car door
Workers returning to offices have helped boost demand for Uber rides.
OnlyPhoto

Ride-hail trips in February remain just 10% below pre-pandemic levels in the same month, Uber said. Mobility gross bookings in February had recovered to 95% compared to February 2019.

On the supply side, gross bookings hit an all-time high in February, the company said.

https://nypost.com/2022/03/07/uber-raises-first-quarter-profit-forecast-on-strong-ridership/ Uber raises first-quarter earnings guidance on strong ridership

DUSTIN JONES

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