Why it matters: Uber provides more evidence of tech sector resilience.
Uber’s strong financial performance came after encouraging results from tech companies including Microsoft, Google parent and Meta.
Uber continues to recover from a slump during the pandemic, when it laid off thousands of workers. The company has since avoided the mass layoffs seen at other tech companies, though it said on Tuesday that its overall headcount was down after layoffs at Uber-owned alcohol delivery platform Drizly and its trucking business.
Uber said its ride-hailing business in the U.S. and Canada has been slow to recover from the pandemic but is now growing faster, with 40% more trips in those regions than a year ago. The company said that lower ticket prices contributed to the growth. Uber has invested heavily in financial incentives to bring drivers back to its platform. Drivers are now also earning more, the company said.
Context: Uber is focused on incentivizing drivers.
Lyft, Uber’s main rival, hasn’t invested heavily in bringing drivers back to its platform after the coronavirus lockdown. With fewer drivers on the road, its price has risen.
Uber also has more offerings than Lyft, including partnerships with taxis and ride-sharing businesses. The company said bookings for products outside of its flagship UberX ride-hailing business were up more than 100% from a year earlier.
The company said it was confident it could compete with Lyft.
“They want to price competitively with us, and we think that creates a playing field where we compete on the brand,” Mr. Khosrowshahi said on a conference call with investors.
Uber’s delivery business grew much slower than ride-hailing services, but still achieved 8% year-over-year booking growth. Its cargo business shrank 23%, which the company attributed to a challenging economy.
Overall, Uber lost $157 million, boosted by gains on its investments in other companies.
What’s next: Lyft reports its quarterly results.
Lyft, which has undergone layoffs and leadership changes, will report its own financial results on Thursday. The company just laid off 26% of its workforce and appointed a new CEO.