Uber Technologies has projected second-quarter gross bookings above Wall Street expectations, signalling robust demand for its ride-hailing and delivery services despite ongoing geopolitical tensions. Shares in the San Francisco-based company climbed approximately 9% in premarket trading following the announcement.
For the June quarter, Uber anticipates gross bookings of $57.75 billion, surpassing analysts' average estimate of $53.7 billion. The company attributes its improved productivity and moderated hiring pace to the increasing adoption of artificial intelligence tools across its operations.
Uber's optimistic forecast underscores the effectiveness of its strategy to maintain stable pricing while expanding into higher-margin ventures, such as its business platform. Growth has been bolstered by strong international delivery demand, particularly in markets like Australia, and strategic expansion into new territories, including Denmark.
The company continues to evolve beyond ride-hailing, developing a comprehensive platform encompassing food delivery, grocery, travel, and local commerce, with a recent foray into hotel bookings. Its Uber One membership programme has surpassed 50 million users, accounting for roughly half of its gross bookings.
In the realm of autonomous vehicles, Uber is pursuing a partnership-led model, collaborating with over 20 companies to integrate robotaxis onto its platform. The company aims to facilitate autonomous vehicle trips in as many as 15 cities globally by the end of 2026.
While Uber's revenue for the March quarter came in at $13.2 billion, missing estimates due to severe winter storms in the US, the Middle East conflict, and higher gasoline prices, its adjusted profit per share beat expectations. Smaller rival Lyft is set to report its first-quarter results on Thursday, with its shares rising about 4% before the bell.
