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 well on its way back up after two very difficult years due to the Covid-19 pandemic.
Return to normalcy boosts Uber
As a result, the company’s revenue increased 136% over the same period last year to $6.9 billion; that’s better than its own predictions of $6.13 billion in revenue.
During the pandemic, Uber relied mostly on its food delivery division, Uber Eats, which has grown significantly and outperformed its mobility arm during this period. For the first time since 2020, Uber is seeing revenue from its mobility division surpass Uber Eats by generating $2.52 billion net, up 200 percent from last year. The firm counted 1.71 billion rides on its platform during the quarter.
That trend seems to be continuing right now – Uber CEO Dara Khosrowshahi explained that mobile-related gross bookings in April exceeded 2019 levels in all regions and use cases, reports the New York Times. ” As people returned to offices, restaurants, pubs, stadiums and airports around the world, they returned to Uber “, summarizes the CEO.
Uber Eats still achieved a record number of bookings in the first quarter of 2022 with a 12% increase, showing the company’s resilience even as restaurants reopened. As a result, Uber Eats brought in $2.51 billion net to the company.
Despite the reopening of restaurants, Uber Eats reports a strong first quarter. Photograph: eggbank / Unsplash
Losses due to its investments
Despite these very promising results, Uber is also facing losses to the tune of $5.9 billion, mainly because of its investments in Grab, Aurora and especially, Didi Chuxing. The value of the Chinese giant is indeed in free fall since its entry on Wall Street, that the company will leave as a result of pressure from Beijing.
Despite this, morale is high at Uber: the company expects to generate “ significant positive cash flow ” for the full year 2022, which would be a first since its inception. The good health displayed by Uber is in contrast to its main rival across the Atlantic: Lyft. The firm saw its shares fall sharply after the announcement of its quarterly results, especially because, in addition to not having a dedicated food delivery branch to strengthen, it struggles to hire new drivers.
Driver shortage plagues the industry, but Uber responds
Uber is facing similar worries, not least because demand for rides now far outstrips supply. Uber drivers left the platform in droves when the pandemic was at its peak and people were confined to their homes. The arrival of the Omicron variant in late 2021 has not helped matters, and Uber is trying to attract new drivers.
For example, starting in March, the firm charged users a small fuel tax for each ride, which was then passed on to drivers. Uber said Wednesday that there were more drivers on its platform than at any time since the pandemic began. In addition, the company reshuffled the deck by announcing a groundbreaking partnership with New York cab drivers who will be able to access Uber’s customer base by taking rides.
