Photo Credit: Damian Dovarganes
Despite growing inflation and delays in the gas supply, Uber saw a gain in income. Uber’s business operations are not slowing down, even though a large portion of the world is still grappling with the effects of the Ukraine-Russia war and the pandemic.
In the three months leading up to June, the company’s sales hit $8.1 million, according to a statement released on Tuesday. The amount is twice what it brought in the year prior. This, according to Uber, is mostly caused by the preference people now have for using travel services rather than public transportation.
Uber stated in its quarterly earnings report that the number of consumers and drivers using the travel platform is “at all-time highs,” with approximately 122 million people using the app each month. This represents a 21% increase over the previous year.
The business also disclosed that its cash flow is currently positive. This indicates that the company’s cash flow is greater than its outlays for operations and other expenses, excluding capital expenses, which include property and other tangible assets. A total of $382 million in cash flow entered the company’s account during the most recent quarter.
However, Uber’s other investments are unprofitable at the moment. According to records, the company lost approximately $2.6 million in investments to other travel-related companies such as Didi and Grab. Didi, which primarily operates in China, is subjected to extremely stringent regulations imposed by the Chinese government, resulting in massive losses.
Uber during the lockdown
For many commuters, Uber emerged as the preferred mode of transportation when the pandemic struck major cities. The fall in consumer demand for travel service providers was nonetheless brought on by the closing of numerous firms and the implementation of the house working scheme. On the other hand, the demand for internet food delivery services has increased. This circumstance increased demand for Uber’s Eats division while decreasing demand for its Rides division.
Due to the growing popularity of online grocery delivery, Uber has constantly improved its delivery service. In fact, the company recently announced its newest grocery ordering services last month. While this is also a feature available in Uber Eats, the new and improved service allows users to create advanced delivery schedules, order tracking and product substitutions.
CEO of Uber Dara Khosrowshahi said that Uber “delivered balanced growth on a platform that’s larger than ever, with the number of consumers and earners using Uber now both at all-time highs.”
“No one wishes for a tough economic environment or elevated inflation that’s affecting so many of us, including Uber drivers,” Khosrowshahi explained during a conference. According to the corporate official, Uber’s most recent gain allows it to play to its strengths the most.
This Tuesday, Uber’s stock increased by 15%.
Tech industry amid the economic downturn
In the midst of the economic crisis, a lot of tech companies have implemented cost-cutting measures, including hiring freezes and layoffs.
Uber has also attempted to calibrate its approach in order to adapt to the current economic landscape.
“When we look at the competitive environment, this is the strongest we felt competitively globally since Nelson and I probably started here,” stated Khosrowshahi. Nelson Chai is the CFO of Uber.
The CEO remarked, “Right now, the machine is operating,” in reference to the firm’s success in maintaining order among its drivers so they can better serve consumers.
Uber recently disclosed additional improvements to its Upfront Fares feature, including an expansion into other cities so that its drivers would have access to more information about the destinations of the customers. This is the characteristic that its drivers want the most, according to Khosroshahi.
Opinions expressed by CEO Weekly contributors are their own.