Tech

Uber Drivers, Delivery Agents increased to 5 million; Turning cash flow into positive for the first time in a bumper quarter


Uber reported positive quarterly cash flow for the first time on Tuesday and forecast better-than-expected third-quarter operating profit, as more and more people rely on its services for transportation and food delivery. The company’s shares rose 13% to $27.9 (about Rs 2,200) and helped rival Lyft’s shares rise 13%. Uber generated free cash flow of $382 million (about 3,000 crore) in the second quarter, topping analyst expectations of $263.2 million (about 2,100 crore), as rides surpassed excesses foreseen by the pandemic, spurred by office reopenings and a spike in travel demand.

The company also added more drivers and delivery agents to its fleet during the quarter, bringing their total to an all-time high of about 5 million and alleviating concerns that gas prices will rise. prevent them from registering.

“We have a very large number of new drivers who sign up and earn money,” said CEO Dara Khosrowshahi, adding that more than 70% of new drivers have already signed up. choose to join Uber to manage the impact from inflation and the rising cost of living.

At its delivery business, which includes Uber Eats, growth slowed from the previous quarter but the company hopes ordering will become a habit among consumers.

Revenue from Uber’s delivery business grew 37% to $2.69 billion (approximately Rs 21,100), while revenue from its ride-hailing business grew 120% to $3.55 billion (approximately Rs 27,900) in the quarter. ended June 30, both beat Wall Street expectations.

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

Lyft is expected to report results on Thursday.

Uber’s net loss was $2.6 billion (about Rs 20,400), largely influenced by investments in companies like India’s Zomato. A source told Reuters it is likely to sell its stake in the Indian food delivery company on Wednesday.

According to IBES data from Refinitiv, Uber’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was $364 million (approximately Rs 2,900), beating estimates of $257.89 million (about Rs 2,000). Rs).

Currently, the company expects adjusted EBITDA of $440 million – $470 million (approximately Rs 3,500 to crore), also above its estimate of $383.95 million (approximately Rs 3,000).

© Thomson Reuters 2022




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