Uber Shares Jump on Surprise Ride Growth

UBER stock is up 9% to $33.75 per share.

The ride-sharing company reported an adjusted earnings per share (“EPS”) loss of $1.70, topping the expected loss of $0.84 per share. (“EBITDA”) was $612 million, below the consensus of $732.6 million.

UBER’s revenue for the quarter was $3.54 billion, edging out the estimated $3.53 billion. Revenue from Rides was $2.48 billion versus the expected $2.46 billion. Its Uber Eats segment saw revenue of $527 million compared to the estimated $424.3 million. The company’s freight, “other bets,” and its Advanced Technologies Group generated $199 million, $30 million, and $25 million in revenue, respectively.

The company’s gross bookings for rides were $11.45 billion; down 80% from last year. UBER’s gross bookings for Uber Eats was $3.07 billion, a 50% year-over-year increase.

UBER’s CEO Dara Khosrowshahi noted the company’s Rides business had been hit particularly hard by the pandemic. However, the company said Rides volume had increased every week over the last three weeks. The CEO also said the company saw a surge in food delivery, and it’s “encouraged by the early signs” in markets that things are beginning to reopen.

The company highlighted it was taking “proactive steps” to emerge stronger from the lock down and achieve profitability.

UBER has exited eight unprofitable Eats markets, reduced the size of its customer support and recruiting teams by 14%, and merged its JUMP bike unit into its Lime scooters unit. Meanwhile, UBER made it clear its Rides and Eats business remained its top priorities – hinting at a possible package delivery service to work with retailers.