Uber raised its outlook for first-quarter core profit on Monday, saying its ridehailing business was recovering faster than expected as the economy reopens and more people travel.
In a regulatory filing boosting profit outlook to $150 million, Uber said it had seen a surge in profitable airport rides and an increase in commuting as offices reopened following pandemic restrictions.
The company also said customers continued to order food at a high rate in February.
With gas prices skyrocketing and the price of new and used cars soaring, some people may also be delaying vehicle purchases and opting for ridehailing services instead.
Uber raised its outlook for first-quarter core profit on Monday, saying its ridehailing business was recovering faster than expected
Uber shares rose about 5 percent in premarket trading and opened higher, but the gains were erased amid a broader market selloff on Monday
Shares of the ride hailing company rose about 5 percent in premarket trading, with its smaller peer Lyft Inc also seeing a gain, but the gains were erased amid a broader market selloff.
Uber said in a filing it now expected adjusted earnings before interest, taxes, depreciation and amortization of $130 million to $150 million in the first three months of the year, up from $100 million to $130 million it previously projected.
‘Our mobility business is bouncing back from Omicron much faster than we expected,’ Uber Chief Executive Dara Khosrowshahi said.
He said consumers were eager to book rides for travel, commuting or nightlife.
Khosrowshahi said gross bookings for airports, which are among the most profitable routes for Uber, were up over 50 percent month-on-month in February and headed to be one of the strongest ever in the upcoming travel season.
Several companies are also bringing staff back to offices over two years after the pandemic forced many to shift to working from home.
‘Our mobility business is bouncing back from Omicron much faster than we expected,’ Uber Chief Executive Dara Khosrowshahi said
During the peak of the pandemic, Uber’s delivery business thrived as consumers became more dependent on ordering food and groceries online.
Ride-hail trips in February remain only 10 percent below pre-pandemic 2019 levels in the same month, Uber said.
February mobility gross bookings had recovered to 95 percent compared with February 2019.
On the delivery side, gross bookings reached an all-time high in February, the company said.
Meanwhile, ridesharing options may be increasing in appeal as gas prices approach all-time highs.
Gasoline prices are pushing even farther above $4 a gallon, the highest price that American motorists have faced since July 2008, as calls grow to ban imports of Russian oil.
Prices at the pump were rising long before Russia invaded Ukraine and have spiraled faster since the start of the war.
Gasoline prices are pushing even farther above $4 a gallon, the highest price that American motorists have faced since July 2008, as calls grow to ban imports of Russian oil
The U.S. national average for a gallon of gasoline has soared 45 cents a gallon in the past week and topped $4.06 on Monday, according to auto club AAA.
The price of regular broke $4 a gallon on Sunday for the first time in nearly 14 years and is now up nearly 50 percent from a year ago.
The price for gasoline in Europe is even higher, averaging 1.75 euros per liter last week, according to the European Commission, the equivalent of $7.21 per gallon.
GasBuddy, which tracks prices down to the service-station level, said Monday that the U.S. was likely to break its record price of $4.10 a gallon, but that does not account for inflation.
In today’s terms, the record price would be equal to about $5.24 after accounting for inflation.
‘Forget the $4 per gallon mark, the nation will soon set new all-time record highs and we could push closer to a national average of $4.50,’ said GasBuddy analyst Patrick De Haan.
‘We´ve never been in this situation before, with this level of uncertainty. … Americans will be feeling the pain of the rise in prices for quite some time.’