Uber gains momentum in 2nd quarter, investors look past loss

LONDON: Uber continued to gain momentum in the second quarter with Americans heading back to offices and traveling more as anxiety over COVID-19 eases.

Passengers took a total of 1.87 billion trips on Uber during the spring and early summer, a 24 percent increase from the same time last year.

Revenue at the San Francisco company more than doubled to $8.07 billion, bolstered by a change in the business model for its UK mobility business and the acquisition of Transplace by Uber Freight.

This beat the $7.36 billion that analysts polled by FactSet predicted.

Gross bookings surged 33 percent to $29.08 billion, an all-time high. Looking ahead, Uber Technologies Inc. foresees third-quarter gross bookings between $29 billion and $30 billion.

Shares jumped more than 10 percent before the market open on Tuesday.

Uber has regained a lot of ground since the start of the COVID-19 pandemic in March 2020 triggered government lockdowns that kept most people at home, limiting the need for anyone to need a ride from Uber.

The company pivoted at the time by building up a then-nascent food-delivery division, although that segment isn’t growing as rapidly as last year now that more people are eating in restaurants again.

Uber lost $2.6 billion, or $1.33 per share, for the three months ended June 30. Wall Street expected a loss of 27 cents per share.