Uber stock rises after quarterly earnings report announces 72% revenue growth
Uber, Lyft driver details current struggles amid record gas prices
Chris Gerace, a part-time Uber and Lyft driver, argues that the temporary surcharge Lyft and Uber are providing in an effort to help drivers account for the higher cost is not enough.
Despite rising interest rates, inflation and a looming recession, Uber's quarterly earnings reported revenue growth that helped boost the company's shares by nearly 13% at the opening bell.
Uber reported total earnings for the third quarter of $8.3 billion, a 72% increase compared to the poor year of $3.8 billion. Moreover, the ride-sharing app saw the number of trips grow by 19% to 1.95 billion, totaling 21 million trips per day by the end of September.
The food delivery service, Uber Eats, also had a strong third-quarter performance with a revenue increase of 24% totaling to $2.8 billion.
"Our global scale and unique platform advantages are working together to drive more profitable growth, with gross bookings growth of 32% and record adjusted EBITDA of $516 million," said Dara Khosrowshahi, the company's CEO. "Even as the macroeconomic environment remains uncertain, Uber’s core business is stronger than ever."
UBER'S FORMER SECURITY CHIEF FOUND GUILTY OF HIDING 2016 DATA BREACH
Uber CEO Dara Khosrowshahi praised the company’s growth following the release of its third quarter earnings report. (Reuters/Anushree Fadnavis / Reuters) However, the company did have a net loss of $1.2 billion for the quarter and did not meet expectations in other categories. Gross bookings totaled $29.11 billion instead of the expected $29.63 billion. Mobility and delivery bookings, when combined, added up to $27.36 billion, which was slightly below Uber's expectations of $27.72 billion. Loss per share also stood at $-0.61 versus the estimated loss of $-0.17. UBER, LYFT AND DOORDASH REACT TO BIDEN'S GIG WORKER RULE "Strong demand for our offerings, better marketplace efficiency, and our asset-light platform helped to deliver adjusted EBITDA well above our guidance, even as foreign exchange and inflationary headwinds impact all global businesses," said Uber's CFO Nelson Chai in a statement. "We remain focused on excellent execution and disciplined cost management to deliver on our growth and profitability commitments for the coming years," Chai added. GET FOX BUSINESS ON THE GO BY CLICKING HERE Source: Read Full Article