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• Uber added more drivers and delivery agents in Q2, taking their total number to an all-time high of about 5 million
Uber Technologies Inc (NYSE: UBER) on Tuesday reported positive quarterly cash flow for the first time and said the ride-hailing giant expects third-quarter operating profit to be above estimates as more people rely on its services for transport and ordering food.
The company generated a free cash flow of $382 million in the second quarter ending June 30, exceeding analysts’ expectations of $263.2 million, as trips surpassed the levels seen before the pandemic, boosted by office reopenings.
Shares of Uber jumped more than 17% to $28.84.
Uber also added more drivers and delivery agents to its fleet in the quarter, taking their total number to an all-time high of about 5 million.
“We have a very strong flow of new drivers who are signing up, coming on to earn,” Chief Executive Officer Dara Khosrowshahi said, adding that over 70% of new drivers opted to join Uber to manage a hit from inflation and rising costs of living.
Uber’s delivery business growth slowed from the prior quarter, but the company expects ordering in to become a habit for consumers.
Revenue from Uber Eats rose 37% to $2.69 billion, while that of the ride-share business surged 120% to $3.55 billion in the second quarter, both surpassing Wall Street expectations.
Uber’s net loss was $2.6 billion, hurt mainly by investments in companies such as India’s food delivery giant Zomato.
While the company reported adjusted earnings of $364 million, surpassing Wall Street estimates of $257.89 million, Uber now expects adjusted EBITDA of $440 million-$470 million, also above estimates of $383.95 million.
Picture Credit: Cnet
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