Uber Technologies has forecast second-quarter gross bookings above Wall Street expectations, signalling strong demand across its ride-hailing and delivery services. The San Francisco-based company provides a vast platform connecting users with drivers for transport and various merchants for delivery of food, groceries, and other goods. Its shares rose by approximately 7% following the announcement, despite the ongoing Middle East conflict being anticipated to temper growth.
For the June quarter, Uber expects gross bookings to reach between US$56.25 billion and US$57.75 billion, surpassing analysts’ average estimate of US$56.07 billion. Adjusted earnings per share are also projected to be slightly above expectations, ranging from 78 to 82 cents against an estimated 79 cents. The company’s strategy of maintaining stable prices while expanding into higher-margin business areas, alongside robust international delivery demand, particularly in markets like Australia, and new geographical expansions such as Denmark, have been key drivers. Adam Ballantyne, a senior analyst at Cambiar Investors, noted this upbeat forecast as a sign of “durable demand” with significant room for market share growth.
Uber’s focus on technological advancements, including artificial intelligence tools, is reportedly improving productivity and moderating its hiring pace. The company continues to diversify its platform beyond traditional ride-hailing, encompassing food delivery, groceries, travel, and recently, hotel bookings, with its Uber One membership program now serving over 50 million users. While first-quarter revenue slightly missed estimates due to external factors like weather and geopolitical tensions, profit surpassed expectations, with delivery and freight segments demonstrating strong performance. Separately, Uber and Spanish lender Banco Santander recently finalised a 1 billion euro (A$1.68 billion) financing facility to support European fleet operators in expanding their vehicle fleets.
