What's going on?
Uber put the pedal to the metal last quarter, according to Wednesday’s results.
What does this mean?
High inflation helping Uber wasn’t a scenario that anyone expected – but peek a little closer, and Uber’s success actually makes sense. For one, the cost of car ownership has climbed so high that some folk have to use a cab just to get from A to B these days. And for another, the flagging economy has drivers flocking to the platform to earn some extra money behind the wheel. In fact, Uber had a record number of drivers on the roads last quarter, and their chauffeuring – plus Uber’s other mobility services, like scooters and rickshaws – racked up a record two billion plus trips, just under a million an hour. The company’s food delivery business Uber Eats ticked along nicely too, helping lift overall revenue by a better-than-expected 49% – a number that would’ve been even higher if the strong US dollar hadn’t eaten into it.
Why should I care?
The bigger picture: Eat up.
Uber’s promising forecasts and determination to turn a profit this year had investors feeling starry-eyed about the future as well as the past. But with all the hubbub about the company, make sure you don’t overlook Uber Eats. It might have been the ride-hailing business that stole the headlines, but food delivery kept the business afloat during the pandemic, and the segment still brings in almost half the firm’s overall revenue. Plus, with newer services like alcohol and grocery delivery tipped to catch on, it could drive growth down the line.
Zooming out: Slowcoach.
Stats like that suggest Uber’s not losing its edge to rivals like Lyft, and that stands to reason: Uber’s got more drivers on the road, which means it has a greater likelihood of bagging customers and, ultimately, a more efficient ride-hailing system. At any rate, analysts are clearly backing one horse: the proportion of buy ratings for Uber’s stock is double that of Lyft’s.