Uber Technologies Inc.’s shares shot up more than 9% on Tuesday on the release of the company’s second-quarter earnings report, which exceeded expectations. Uber Technologies’ stock was trading at $64.15, up $5.66 or 9.69%, at 12:47 p.m. EDT. Uber’s second-quarter results above Wall Street forecasts due to consistent demand for its food delivery and ride-sharing services.Â
In the second quarter, which concluded on June 30, its revenue increased by 16 percent to $10.70 billion, while gross bookings increased by 19 percent to $39.95 billion. It made 47 cents a share in profit. The ride-sharing industry generated $6.13 billion in sales, a 25% increase.
Consistent Growth
According to Uber CEO Dara Khosrowshahi, “mobility had a standout second quarter… growth was consistent across use cases and geographic strength was led by LatAm and APAC, in particular Brazil, Australia, and India.” Uber reported that the number of self-driving car rides on its network increased six-fold in the June quarter, thanks to collaborations with startups Waabi and Alphabet’s Waymo.
“Although there have been some worries regarding consumer spending on restaurants and delivery, we are not seeing any impact at this time,” Khosrowshahi stated, noting that more emphasis was being placed on groceries thanks to expanding collaborations with Costco Wholesale and Instacart, which was increasing delivery.
Uber Collaboration
Uber predicted between $40.25 billion and $41.75 billion in gross bookings and between $1.58 billion and $1.68 billion in adjusted core earnings for the third quarter. Following a collapse in world markets on Monday, US stock indices saw a little increase on Tuesday.
In the upcoming weeks and months, Khosrowshahi stated that he anticipates a large number of autonomous vehicle suppliers and is “highly confident” that Uber will be able to collaborate with many of them. Uber has also made headway in growing its Uber One membership program by providing college students with discounts since May.
