Uber Technologies on Tuesday reported higher-than-expected revenue in the second quarter of the year, with customer demand for taxi rides and meal deliveries holding firm despite increased inflation.
Shares in the ride-hailing platform traded over 16% higher on Tuesday morning.
Uber said its revenue doubled to US$8.1 billion in the second quarter. Analysts polled by financial news agency Bloomberg had expected an average of US$7.4 billion.
Uber also reported a 33% increase in retail transactions, ending the second quarter on a record high of US$29.1 billion. This included taxi calls, meal deliveries and freight.
The company’s operating profit rose by $873 million to $364 million, much better than expected, and 122 million customers use the platform monthly. Analysts had estimated 120.5 million customers.
Uber CEO Dara Khosrowshahi said this was a record.
Uber and similar companies like Lyft and DoorDash have been struggling with high inflation and an economic outlook that could put a brake on demand just as the economy started to recover from the corona crisis.
At the same time, loss-making companies like Uber are less popular with investors because the US Central Bank has been raising interest rates on investments. Up to Monday night, Uber shares had already lost 43% of their value this year. However, on Tuesday, the stock was more than 16% higher.
Khosrowshahi said in May that the company was “resistant to recession,” but it did take steps to keep costs under control.
Finally, Uber reports that it posted a net loss of $2.6 billion, or $1.33 per share, in the second quarter, due to unrealised investment losses in the Grab Holdings, Aurora Innovaton and Zomato companies.
