On Tuesday, Uber reported solid second-quarter results that surpassed Wall Street Estimates, supported by strong demand for ridesharing and food-delivery services.
Its stock price increased by 10.93% to $64.87 apiece on August 06. However, it is set to decline by -1.17% to $64.11 per share in the after-hours session.
The company’s earnings per share jumped to $0.47, beating the analysts’ expected $0.31 and the previous $0.32 figures.
Moreover, its revenue went up to $10.70 billion, surpassing the anticipated $10.57 billion and the $10.13 billion from the past quarter.
Profits in its ridesharing sector rose by 25.00% to $6.13 billion, higher than the estimated $5.94 billion. Its delivery business reported a revenue of $3.29 billion, better than the $3.32 billion outlook.
Trips on the platform by self-driving vehicles were six times higher, backed by partnerships with companies such as Alphabet’s Waymo and startup Waabi.
Ridesharing demand has substantially boosted in past months as more people have returned to their workplaces, benefiting Uber and its rival Lyft.
According to its CEO, Dara Khosrowshahi, mobility drove a strong Q2 and consistent growth across use cases.
Khosrowshahi added that despite the concerns about consumer spending on restaurants and delivery, their earnings are unaffected. Also, a greater push on groceries brought by partnerships with Instacart and Costco Wholesale spiked deliveries.
Instacart and Uber Partnership Boost Deliveries
Uber Technologies stated that its partnership with Instacart is supporting incremental restaurant deliveries. The collaboration, which added Uber Eats to Instacart’s listing, also ramped up its retail and grocery business.
Referrals from the grocery-delivery specialist have been strong in suburban markets where Instacart has been prominent. The average basket size of orders from the app is 20.00% larger than native Uber Eats orders.
Moreover, Khosrowshahi said their retail and grocery delivery sector still has room for additional growth. They also aim to sign new retail partners and broaden their customer base.
