Uber sees few signs of customer retreat despite inflation

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FILE – An Uber Mark is displayed on a car in Palatine, Illinois, Thursday, February 10, 2022. The US Department of Labor is proposing a new rule for classifying employees, saying that employees have been wrongly labeled as independent contractors, harming their rights. The department said Tuesday, October 11, that the misclassification of workers as independent contractors instead of workers denies worker protection under federal labor standards, promotes wage theft, allows some employers to gain unfair advantages over businesses, and harms the economy. (Photo AP / Name Y. Huh, File)

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Uber’s shares surged on Tuesday after the company said there was no evidence Americans were withdrawing from hail rides or ordering food deliveries despite soaring inflation.

“Cities are reopening, travel is expanding, and more broadly: the constant shift in consumer spending from retail to services,” said CEO Dara Khosrowshahi. at any time for mobility and total gross bookings of the company. “

The company expects fourth-quarter gross bookings to grow 23% to 27% from last year, totaling $ 30 to $ 31 billion.

Shares of Uber Technologies Inc., which fell nearly 30% this year, climbed 15% on opening to $ 30.57.

Gross bookings increased by 26% to $ 29.1 billion in the last quarter, or 32% on a fixed currency basis. Travel increased by an average of 19% to around 21 million daily trips.

San Francisco’s entry service has struggled during the pandemic amid the closures, but has thrived with the introduction of vaccinations when Americans return to the office, go out, or stay home and order dinner at a restaurant.

Uber struggled to find enough drivers to meet demand, and last month the Biden administration proposed new standards that will make it difficult to classify millions of workers as independent contractors. This could impact companies like Uber and the company’s stocks on the day the proposal was posted, plummeting double digits.

Khosrowshahi said Tuesday that any ruling that adheres to these principles “effectively returns us to the framework under the Obama presidency, which was the framework in which we developed significantly.”

He said there was an ongoing dialogue with the states about classifying workers and providing protection to independent contractors.

“The road will be bumpy, and for us the nature of the work will always be a big problem that we have a duty to shape in dialogue with local authorities,” said Khosrowshahi.

Industry analysts predict Uber will return to normal as life returns to normal after the pandemic.

“Uber continues to experience healthy growth as the driver shortage has essentially ended, while the company continues to benefit from return trips, office transfers, and other post-pandemic trends that linger around the world, and Uber is ready to take advantage in 2023. ” Dan Ives wrote on Tuesday.

Third-quarter revenue increased to $ 8.34 billion from $ 4.85 billion. This exceeded the expectations of analysts surveyed by Zacks Investment Research who had forecasted revenues of $ 8.08 billion.

Uber lost $ 1.21 billion, or 61 cents per share, in the three months ended September 30. This was compared to a larger loss of $ 2.42 billion, or $ 1.28 per share, a year earlier. Wall Street was looking for a loss of 17 cents a share.

This story was originally published November 1, 2022 6:34 AM.

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