Uber reports record revenue as the return to the office tees up the ride-hail biz for gains
5 stars… Uber reported a record $8.6B in quarterly revenue, with CEO Dara Khosrowshahi saying it was the company's strongest quarter ever. That record represents a 49% jump on the year and was made possible by 131M customers hailing 2.1B rides — up from 1.7B a year earlier. Driving the growth:
- Folks: Uber's rides biz, which makes up nearly half its total sales, was the fastest-growing unit last quarter with stretch-limo-sized 82% growth from last year.
- Freight: Uber’s freight biz, which connects semitruck drivers with high-volume loads (like trucks full of Pepsi), did $1.5B in revenue, up 43% from last year.
- Fries: Its Eats delivery unit grew 21% from last year — a slower pace than during pandemic boom times, when it overtook Uber’s rides division.
- Flyers: Uber also got a boost from recently introduced in-app ads (think: beer promo as you book your ride to the bar).
Pass the AUX cord… With Uber setting records, investors are all ears for Lyft's earnings, scheduled for today. The smaller of the two ride-hail whales, Lyft has long focused on moving people (instead of people plus Happy Meals). Lyft’s expected to have grown revenue by 19% from last year, to $1.1B+. But the fact that its prices were typically 10% higher than Uber's could have hurt bookings as people price-toggled between apps.
Diversification can come in clutch… With the return to the office picking up steam — US offices passed the 50%-occupancy mark last week — Lyft's ride-centric biz could be primed for gains. Though Lyft could benefit from the same ride boom lifting Uber, its hyper focus on passengers could be a double-edged sword. Recall: Lyft got hit extra hard during the pandemic as ride-hail volumes plunged, while Uber had its food-delivery biz to fall back on.