The company’s shares rose more than 9% by mid-trading and helped raise shares of its rival Lyft Inc, which is due to report its earnings on Thursday this week.
Uber is capitalizing on its dominant position in key global markets as travel recovers from the lull caused by the pandemic. According to analysts, the sharp increase in the number of people looking for additional income has also helped reduce the remuneration for gig workers.
“Our clear leadership in driver preferences has allowed us to better serve this growing demand, with 5.7 million drivers and couriers earning $13.7 billion (including tips) from Uber in the quarter, a record high,” said CEO Dara Khosrowshahi.
After poor results over the past two years, “the ridesharing category in the U.S. and Canada will grow faster in 2023,” he said.
Uber expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the June quarter to be between $800 million and $850 million, compared with analysts’ forecast of $749.1 million, according to Refinitiv.
The company said it is on track for profitability of operating profit this year and that it has maintained its workforce at the same level after a consistent reduction in headcount in the first quarter.
According to the company’s statement, the popularity of taxi services and grocery delivery is expected to grow in the coming years, resulting in increased revenue and improved financial performance.
In addition, Uber plans to reduce costs by introducing new technologies, automating processes and streamlining operations.
As a result, the company expects to achieve profitability by the end of 2023 and continue successful growth in the future.
Uber also forecasts gross orders of between $33 billion and $34 billion, compared to expectations of $33 billion.
“The return to commuting, travel leads to mobility exceeding ‘normal’ seasonality in Q1,” said Oppenheimer & Co analyst Jason Helfstein, adding that the increase in driver density and the number of trips increased the commission that Uber receives for transactions.
Revenue jumped 29% to $8.82 billion, beating estimates of $8.73 billion, thanks to a 72% increase in the taxi segment.
Growth in the food delivery division was slightly above expectations at 23%, and Uber said it expects “strong growth” in the coming quarters.
Adjusted EBITDA was $761 million, the highest in Uber’s history, and an adjusted loss of 8 cents per share was less than expected.