After signs of improvement in its financial results for the last quarter of 2021, Uber confirms in the first quarter of 2022. The firm is indeed recovering after two very difficult years due to the Covid-19 pandemic.
Return to normal boosts Uber
Thus, the company’s turnover increased by 136% compared to the same period of the previous year to reach 6.9 billion dollars; this is better than its own predictions which estimated revenues at $6.13 billion.
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During the pandemic, Uber has mostly relied on its food delivery division, Uber Eats, which has largely grown and outperformed its mobility arm during this time. For the first time since 2020, Uber sees revenue from its mobility division surpass Uber Eats by generating $2.52 billion net, up 200% from last year. The firm recorded 1.71 billion journeys on its platform during the quarter.
This trend seems to be confirmed now: Uber CEO Dara Khosrowshahi explained that mobility-related gross bookings in April exceeded 2019 levels in all regions and for all use cases, report it New York Times. ” As people returned to offices, restaurants, pubs, stadiums and airports around the world, they returned to Uber sums up the CEO.
For its part, Uber Eats still achieved a record number of reservations in the first quarter of 2022 with a 12% increase, which shows the resilience of the company even as restaurants have reopened. Uber Eats brought the company $2.51 billion net.
Despite the reopening of restaurants, Uber Eats signs a solid first quarter. Photography: eggbank / Unsplash
Losses because of his investments
Despite these very promising results, Uber must also suffer losses of up to 5.9 billion dollars, mainly because of its investments in Grab, Aurora and above all, Didi Chuxing. The value of the Chinese giant is indeed in free fall since its entry on Wall Street, which the company will also leave as a result of pressure exerted by Beijing.
Despite this, morale is high at Uber: the company plans to generate “ significant positive cash flow for the whole of 2022, which would be a first since its creation. The good health displayed by Uber is in contradiction with its main rival across the Atlantic: Lyft. The firm saw its shares on the stock market fall sharply after the announcement of its quarterly balance sheet, in particular because, in addition to not having a branch dedicated to the delivery of food to strengthen itself, it is struggling to hire new drivers.
Lack of drivers weighs on the sector, but Uber reacts
Uber faces similar issues, not least because demand for rides now far exceeds supply. Large numbers of Uber drivers left the platform when the pandemic was at its peak and people were confined to their homes. The arrival of the Omicron variant at the end of 2021 did not help matters, and Uber is trying to attract new drivers.
For example, as early as March, the firm charged users a small fuel tax for each trip, which was then passed on to drivers. Uber said Wednesday there were more drivers on its platform than at any time since the pandemic began. In addition, the company has reshuffled the cards by announcing an unprecedented partnership with New York taxi drivers who will be able to access Uber’s customer base by taking errands.
” There’s a lot of work ahead of us, but it’s a rolling machine “Assures Dara Khosrowshahi, adding that Uber “ begins to separate itself from its competitors “.