Uber Driver Count Up at 5 Million, Turns Cash Flow Positive for First Time

Uber reported optimistic quarterly money movement for the primary time ever on Tuesday and forecast third-quarter working revenue above estimates, as extra individuals depend on its companies for transport and meals supply. The firm’s shares surged 13 p.c to $27.9 (roughly Rs. 2,200) and helped drive an 13 p.c acquire in rival Lyft’s inventory. Uber generated free money movement of $382 million (roughly Rs. 3,000 crore) within the second quarter, topping analysts’ expectations of $263.2 million (roughly Rs. 2,100 crore), as journeys exceeded ranges seen earlier than the pandemic, boosted by workplace reopenings and a surge in journey demand.

The firm additionally added extra drivers and supply brokers to its fleet within the quarter, taking their complete quantity to an all-time excessive of about 5 million and allaying issues that hovering fuel costs have been deterring them from signing up.

“We have a very strong flow of new drivers who are signing up, coming on to earn,” Chief Executive Officer Dara Khosrowshahi stated, including that greater than 70 p.c of recent drivers opted to hitch Uber to handle a success from inflation and rising prices of residing.

At its supply enterprise, which incorporates Uber Eats, development slowed from the prior quarter however the firm expects ordering in to change into a behavior for customers.

Revenue from Uber’s supply section rose 37 p.c to $2.69 billion (roughly Rs. 21,100 crore), whereas that of ride-share enterprise surged 120 p.c to $3.55 billion (roughly Rs. 27,900 crore) within the quarter ended June 30, each surpassing Wall Street expectations.

“These results are particularly impressive given the growing list of macro and micro concerns weighing on Uber and Lyft,” MKM Partners analyst Rohit Kulkarni stated.

Lyft is scheduled to report outcomes on Thursday.

Uber’s internet loss was $2.6 billion (roughly Rs. 20,400 crore), largely damage by investments in firms similar to India’s Zomato. It is more likely to promote its stake within the Indian food-delivery agency on Wednesday, a supply instructed Reuters.

Uber’s adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) have been $364 million (roughly Rs. 2,900 crore), surpassing estimates of $257.89 million (roughly Rs. 2,000 crore), in response to IBES knowledge from Refinitiv.

It now expects adjusted EBITDA of $440 million-$470 million (roughly Rs. 3,500 crore to Rs. 3,700 crore), additionally above estimates of $383.95 million (roughly Rs. 3,000 crore).

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