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.
In the second quarter, which concluded on June 30, its revenue increased by 16 per cent to $10.70 billion, while gross bookings increased by 19 per cent to $39.95 billion. It made 47 cents a share in profit.
At $6.13 billion, its ride-sharing business generated a 25% increase in sales.
“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 CEO Dara Khosrowshahi said.
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.
“While there have been some concerns about consumer spend on restaurants and delivery, we are not seeing any impact today,” Khosrowshahi said, adding that a greater push on groceries through expanded partnerships with Instacart and Costco Wholesale was boosting deliveries.
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.
US stocks
US stock indexes saw a slight increase on Tuesday following a collapse in world markets on Monday.
The Dow Jones Industrial Average increased by 317.78 points, or 0.82 per cent, to 39,021.05 at 11:24 a.m. ET. The S&P 500 climbed by 69.49 points, or 1.34 per cent, to 5,255.82, while the Nasdaq Composite increased by 229.45 points, or 1.42 per cent, to 16,429.53.
It is “highly confident” that Uber can collaborate with many of the autonomous car companies that he anticipates there will be in the upcoming weeks and months, according to Khosrowshahi.
Since May, Uber has been giving college students discounts, which has helped the company increase the number of users in its Uber One membership program.
