While most of the tech industry saw quarterly earnings reports that ranged from “disappointing” to “AHHH!!!”, Uber is looking at its latest numbers with a big, toothy grin.
Driving the news: Uber had its “strongest quarter ever,” according to CEO Dara Khosrowshahi, beating analysts' expectations after reporting growth in revenue, adjusted earnings, and gross bookings.
- Despite an economic climate full of frugal consumers, demand for rides remained strong as more people left the house, while growth for Uber Eats cooled only slightly.
In fact, Uber might actually benefit from this uncertain environment. As car ownership grows more expensive, ride-hailing has become more attractive. As well, Uber has addressed a driver shortage that plagued the company early last year, now boasting a record number of drivers thanks in part to more people taking up side hustles to make a little extra scratch.
- And to attract cost-conscious carless Canucks (say that three times fast), Uber relaunched its cheaper ride-sharing option in some cities after a pandemic pause.
Bottom line: Uber’s sunny forecast is in stark contrast to the cloudy skies over the rest of Big Tech. That’s because while other tech companies saw crazy pandemic growth as people bought mountains of consumer electronics and spent all their time online, Uber suffered. It was forced to lay off thousands while other firms (over)hired. Now, the tables have turned.
While everyone and their uncle hemorrhages staff to keep their heads above water, Uber doesn’t need to follow suit and is in a good position to focus on its main goal: Profitability.