SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

   Technology StocksUber Technologies and Lyft Inc. IPOs


Previous 10 Next 10 
From: Glenn Petersen8/4/2021 5:33:44 PM
   of 238
 
Uber beats estimates, but core business lost $509 million in Q2

PUBLISHED WED, AUG 4 20214:05 PM EDT
UPDATED 8 MIN AGO
Jessica Bursztynsky @JBURSZ
CNBC.com

KEY POINTS

-- Uber beat on both the top and bottom lines in its second quarter earnings report Wednesday.

-- The company reported a net income of $1.1 billion for the quarter.

-- It also reaffirmed its expectation to reach profitability on an adjusted EBITDA basis by the end of this year.

Uber beat estimates on the top and bottom line and turned an unexpected one-time profit during the second quarter.

Shares dipped more than 4% in after hours trading.

Here’s how Uber did versus expectations:

Earnings per share: 58 cents vs an expected 51 cent loss, according to a consensus of analysts surveyed by Refinitiv.


Revenue: $3.93 billion vs $3.75 billion expected, according to Refinitiv.

Uber reported a net income of $1.1 billion for the quarter. That was largely due to unrealized gains of $1.4 billion in Didi and $471 million in Aurora. Shares of Didi have dropped about 37% over the last month, however, shrinking Uber’s stake in the company down by $2 billion last week. Uber’s operating loss was still $1.19 billion.

Its adjusted EBITDA loss was $509 million, down $150 million from the prior quarter but an improvement of $328 million from last year. EBITDA refers to earnings before interest, taxes, depreciation and amortization.

Uber reaffirmed its expectation to reach profitability on an adjusted EBITDA basis by the end of this year.

“As we make progress towards that important milestone, we expect our Adjusted EBITDA loss in Q3 to improve to less than $100 million in addition to record Gross Bookings between $22 and $24 billion,” CFO Nelson Chai said in a letter to investors.

So far, Uber’s Eats segment has bolstered the company to withstand many of the Covid headwinds. When people stopped traveling, they turned to food and goods deliveries. Uber added that its delivery business stayed strong even as Covid restrictions eased around the world.

Here’s how Uber’s largest business segments performed in the second quarter of 2021:

Mobility (gross bookings): $8.6 billion, up 184% from a year ago


Delivery (gross bookings): $12.9 billion, up 85% from a year ago

Delivery revenue has continued to outperform its core ride-hailing business at $1.96 billion, compared with $1.62 billion. In an update to shareholders, the company said that delivery merchants exceeded 750,000.

The company has struggled with supply and demand imbalances because of the pandemic, leading to surge pricing and increased wait times. CEO Dara Khosrowshahi said on the company’s call with investors that prices and wait times are still not at its targets.

“In Q2 we invested in recovery by investing in drivers and we made strong progress, with monthly active drivers and couriers in the US increasing by nearly 420,000 from February to July,” Khosrowshahi said in a statement.

The company did not provide an exact number of drivers, but Khosrowshahi said he was optimistic with growth rates after the company made heavy investments into bringing people back. The company added 30% more drivers in the U.S. from June to July.

“The good news is we’re now in a good place where we’re able to pull those investments back,” Khosrowshahi said. “The investments were big, but the investments were worth it.”

Uber reported 1.51 billion trips on the platform, up 4% from the first quarter and 105% from a year ago. Uber said its drivers and couriers earned an aggregate $7.9 billion during the quarter.

Uber’s largest American competitor, Lyft, also shared financial results this week. The company reported its first quarterly adjusted EBITDA profit, posting $23.8 million, a quarter earlier than expected. It also beat Wall Street guidance on both the top and bottom lines.

This is a developing story. Please refresh for updates.

Uber earnings Q2 2021 (cnbc.com)

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Glenn Petersen who wrote (209)8/4/2021 6:25:02 PM
From: Glenn Petersen
   of 238
 
Lyft revenue grows 125% from last year

PUBLISHED TUE, AUG 3 20214:08 PM EDT
UPDATED TUE, AUG 3 20215:36 PM EDT
Jessica Bursztynsky @JBURSZ
CNBC.com

KEY POINTS

-- Lyft reported second-quarter financial results after-the-bell Tuesday, easily beating on both the top and bottom lines.

-- The company reported its first quarterly adjusted EBITDA profit, posting $23.8 million.

-- Lyft also beat analyst’s active rider expectations.

Lyft reported second-quarter earnings on Tuesday, easily beating on both the top and bottom lines. The company also beat Wall Street expectations for active riders.

Lyft stock was up around 1% in after-hours trading.

Here are the key numbers:

Loss per share: 5 cents vs 24 cents per share expected in a Refinitiv survey of analysts


Revenue: $765 million vs $696.9 million expected by Refinitiv


Active riders: 17.14 million vs 15.45 million expected, per StreetAccount


Revenue per active rider: $44.63 vs $45.36 expected, per StreetAccount

The company reported its first quarterly adjusted EBITDA profit, posting $23.8 million. That’s a quarter earlier than the company had targeted. EBITDA refers to earnings before interest, taxes, depreciation and amortization.

“It’s a significant milestone for a business and for our industry,” CEO Logan Green said on the company’s earnings call. “Going forward we expect to maintain adjusted EBITDA profitability.”

Lyft said its revenue for the quarter jumped 125% year-over-year to $765 million. Revenue was up 26% from the prior quarter. Lyft also issued guidance for its third quarter, telling investors it expects revenue between $850 million and $860 million, barring a material decline in the operating landscape due to the pandemic.

The company said it saw strong demand from riders in July despite an increase in Covid case counts. Lyft reported 17.14 million active riders, up more than 3.6 million riders from the first quarter. Still, the company hasn’t fully recovered to pre-pandemic ridership levels. It reported 21.2 million riders in the first quarter of 2020.

The company has struggled with driver supply and demand imbalances, leading to surge pricing and increased wait times. That, in turn, leads to unhappy customers who could seek out ride services somewhere else.

Green said the number of drivers increased in the second quarter at a faster pace than in the first quarter. He added the company will continue to invest in driver incentives in the coming quarter.

Lyft reported a net loss for the quarter of $251.9 million versus a net loss of $437.1 million in the same period of 2020. The company said its net loss includes $207.8 million of stock-based compensation and related payroll tax expenses. Its net loss margin for the quarter was 32.9% compared to 128.8% in the same quarter a year ago.

The company reported $2.2 billion in unrestricted cash, cash equivalents and short-term investments, flat from the prior quarter.

Lyft earnings Q2 2021 (cnbc.com)

Share RecommendKeepReplyMark as Last Read


From: Glenn Petersen8/8/2021 5:17:07 PM
   of 238
 
Uber, Lyft Prices at Records Even as Drivers Return

Data show average fares were at a record in July despite improvement in pandemic-driven shortage of drivers

By Preetika Rana
Wall Street Journal
Aug. 7, 2021 8:00 am ET

Drivers are returning to Uber Technologies Inc. UBER 2.81% and Lyft Inc. LYFT 0.04% after the companies spent big on incentives to address a pandemic-driven labor shortage. That shift isn’t bringing down fares from record highs, new data show.

The average Uber and Lyft fare in the U.S. rose month-to-month from February through July, touching new highs every time, according to data from Rakuten Intelligence, a market-research firm that based its analysis on e-receipts from more than one million consumers. While the average fare in July edged up slightly from June, it meant consumers paid over 50% more for a ride last month compared with January 2020, before the pandemic.

That’s the most Americans have paid for Uber and Lyft rides in at least three years, according to Rakuten.

The sky-high prices, which the companies say are driven by the continuing labor shortage, come despite a recent influx of drivers. Uber said Wednesday that 30% more drivers signed up in July compared with the month before. Lyft said Tuesday that 50% more drivers signed up in the three-month period that ended in June compared with the preceding three months.

“The data is clear: Driver supply has not kept pace with the surge of demand from riders, throwing the ride-share market out of balance,” a Lyft spokeswoman said, adding that the company would continue to invest in driver incentives to ease the shortage.

Soaring prices haven’t crimped bookings, reflecting consumers’ tolerance for high prices after widespread lockdowns kept many at home last year. Uber and Lyft’s ride business rebounded in the second quarter from the lows of last year, and data from Edison Trends show that consumer spending on ride-hailing remained elevated for the week ended July 19 compared with the same week a year earlier.

The Covid-19 Delta variant “might hurt everything again, but this time things will bounce back a lot faster,” said Brad Erickson, an analyst at RBC Capital Markets who covers both companies. “Bookings aren’t going to go down 90%. It’s not going to be anywhere close to the magnitude of last year,” he said.

Neither company has publicly disclosed how ride prices have fared nationwide in recent months. Nor have they said how many more drivers are needed to meet demand. But Uber said this week that prices were returning to pre-Covid levels in cities or states that had ended unemployment benefits. That shift pushed more drivers to work for Uber in cities like Miami, Atlanta and Houston, alleviating the continuing labor crunch and tempering high prices, executives said.

In New York, San Francisco and Los Angeles—Uber’s top domestic markets—“demand continues to outplay supply, and prices and wait times remain above our comfort levels,” Chief Executive Dara Khosrowshahi told analysts Wednesday after the company reported quarterly results.

An Uber spokesman reiterated that the situation varies city-by-city. In some, he said, prices are inching closer to pre-pandemic levels, while they continue to remain high in others.

Early signs point to the driver shortage and high prices abating at the end of the current quarter next month, as Lyft continues to offer bonuses to drivers and as other states phase out unemployment benefits. Uber said 90% of the 90,000 inactive drivers it surveyed in June indicated they planned to return by September.

Uber and Lyft’s elevated spending on driver incentives, combined with the uncertainty around the looming Delta variant, sent their stocks tumbling earlier in the week even though they beat analysts’ second-quarter demand projections. Both stocks recovered from their lows this past week.

In the extreme scenario that demand tapers off and drivers shun ride-share all over again, “it will make a lot of this investment the companies have just done irrelevant,” said RBC’s Mr. Erickson. Uber and Lyft have the muscle to pump in the money again, but it’ll translate to “a lot of lost dollars.”

Lyft said its third-quarter revenue would take a hit as it planned to spend more on driver incentives, after spending $572 million on them through the second quarter. “We are maintaining elevated supply investments to help lower prices,” Lyft Chief Financial Officer Brian Roberts told analysts on Tuesday. Mr. Roberts said he didn’t think prices would remain this high in the long run.

Uber spent more on incentives than analysts had expected in the second quarter. The company said it doesn’t plan to spend significantly more on them in the current quarter because it has been acquiring drivers in recent weeks despite pulling back on incentives.

As Uber and Lyft eye long-term profits, analysts say consumers should expect to pay more per ride compared with the discounted rates before the pandemic. But analysts also don’t think prices will stay at their current heights.

Drivers’ earnings are at an all-time high, thanks to the continuing bonuses. Uber said its drivers are making more than $40 an hour in its busiest markets. But a near-term challenge is retaining them once the incentives go away.

Derrick Stanfield Kivoi, who runs a small digital marketing business in Miami and has driven for Uber on the side for several years, took to driving again this year after a year-long hiatus because the incentives were too good to turn down. Uber offered him $100 for three consecutive rides, he said, and then followed with a $250 bonus for 40 rides completed during the weekday.

The bonuses tapered off in recent weeks—Uber’s $250 bonus dropped to $50—and Mr. Kivoi turned off the app earlier this week. “As soon as the incentives stop, I’m stopping,” he said.

Uber and Lyft are trying to address the shifting dynamics of gig labor. Uber announced free online language classes for drivers late last month. It also started showing drivers what passengers paid for a ride overall, instead of showing them only the fare portion.

Lyft said last month it was exploring a partnership to trim one of drivers’ biggest expenses, which could involve sizable discounts on gas or insurance or help with buying vehicles.

Write to Preetika Rana at preetika.rana@wsj.com

Uber, Lyft Prices at Records Even as Drivers Return - WSJ

Share RecommendKeepReplyMark as Last Read


From: Glenn Petersen8/21/2021 10:47:18 AM
   of 238
 
California Ballot Measure That Classifies Uber, Lyft Drivers as Independent Ruled Unconstitutional

Proposition 22, which passed in November, was the most expensive such measure in the state’s history

By Preetika Rana
Wall Street Journal
Updated Aug. 20, 2021 11:58 pm ET

A California judge said the November ballot measure that allowed Uber Technologies Inc., Lyft Inc. LYFT -1.92% and DoorDash Inc. DASH 1.11% to continue treating their drivers as independent contractors is unenforceable and unconstitutional.

The companies, which spent more than $200 million to pass Proposition 22 in November, said they would appeal the ruling.

Read the Decision

The companies don’t need to immediately change their way of doing business, but Friday’s ruling adds a wrinkle in their efforts to preserve their independent-worker models and serves as a setback in their yearslong fight against the California law at the heart of the ruling.

Uber and other companies are in a global tug of war with regulators over whether and how to grant more benefits like paid sick leave and health insurance to workers in the so-called gig economy, where apps distribute individual tasks to a pool of people who are generally regarded as independent contractors.

California sued the companies last year, saying they were in violation of the state’s so-called gig law because none of them reclassified their drivers as employees after the statute went into effect in 2020. A high-stakes legal battle ensued, culminating in Proposition 22, in which the companies asked state voters to exempt them from the law.

Uber, Lyft, DoorDash and Instacart Inc. promised workers flexibility, alongside some benefits, if the ballot measure passed. Opponents of the measure said those benefits fall short of those awarded to full-time employees. Still, California voters passed the measure with an overwhelming majority.

Superior Court Judge Frank Roesch said in Friday’s ruling that Proposition 22 limits the state legislature’s authority and its ability to pass future legislation, which is unconstitutional.

“We believe the judge made a serious error by ignoring a century’s worth of case law requiring the courts to guard the voters’ right of initiative,” said Geoff Vetter, a spokesman for the companies’ Proposition 22 campaign. “This outrageous decision is an affront to the overwhelming majority of California voters.”

Friday’s ruling came after a group of ride-share drivers and labor unions challenged the constitutionality of the ballot measure in February.

“Today’s ruling by Judge Roesch striking down Proposition 22 couldn’t be clearer: The gig industry-funded ballot initiative was unconstitutional and is therefore unenforceable,” said Bob Schoonover, the president of SEIU California State Council, one of the labor unions involved in the lawsuit. The companies “tried to boost their profits by undermining democracy and the state constitution,” he added.

Proposition 22 was the most expensive ballot measure in the history of California. It allowed the ride-hailing and delivery companies to avoid complying with a law that could have reshaped their business models and battered their business in the most populous U.S. state. But the effort to win popular support did lead the companies to guarantee new protections.

The companies now offer health insurance for drivers who work 15 hours or more a week, occupational-accident insurance coverage and 30 cents for every mile driven, among other protections.

The win in California set the tone for gig-worker regulation in the rest of the country. Uber, Lyft, DoorDash and Instacart have joined forces for a Proposition 22-like ballot in Massachusetts next year.

Uber, which has a larger global footprint, has had to make concessions outside the U.S. It agreed to grant its U.K. drivers an employment status entitling them to vacation pay and pension contributions after exhausting its legal options in March.

California Ballot Measure That Classifies Uber, Lyft Drivers as Independent Ruled Unconstitutional - WSJ

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Glenn Petersen who wrote (212)8/23/2021 6:29:39 PM
From: TimF
   of 238
 
Superior Court Judge Frank Roesch said in Friday’s ruling that Proposition 22 limits the state legislature’s authority and its ability to pass future legislation, which is unconstitutional.
That's the point of a lot of CA's propositions. Are all the others going to be struck down? Probably not.

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: TimF who wrote (213)8/23/2021 6:53:01 PM
From: Glenn Petersen
   of 238
 
Uber and Lyft actually closed up for the day. The smart money is betting that the ruling will be overturned.

Share RecommendKeepReplyMark as Last Read


From: Glenn Petersen11/1/2021 3:46:29 AM
   of 238
 
Uber and Lyft Thought Prices Would Normalize by Now. Here’s Why They Are Still High.

Benefits for gig workers expired, but riders still pay more—and drivers still earn more—in a tight labor market

By Kim Mackrael and Preetika Rana
Photographs by Sebastián Hidalgo
The Wall Street Journal
Oct. 30, 2021 3:45 pm ET

Americans hailing an Uber or a Lyft ride still face elevated prices due to a shortage of drivers—the latest example of how a tight labor market is costing consumers more while also raising pay for workers.

Uber Technologies Inc. and Lyft Inc. had expected most drivers to return to work after federal unemployment benefits expired nationwide in September. But that is happening only slowly. Fares have only marginally inched down from their summer highs.


That means drivers are earning more and riders are paying more than they were at the beginning of this year, before the widespread availability of vaccines accelerated the economic reopening from pandemic shutdowns. Uber and Lyft prices are directly tied to driver supply, according to the companies.



Uber and Lyft prices remain higher on average than before pandemic shutdowns.
----------------------------

Data show that fares dipped during the late spring and summer in states that opted out early from some or all enhanced and extended federal unemployment benefits, compared with states that didn’t, according to YipitData, which tracks emailed receipts.

But the nationwide average ride-share fare declined just 3% during the first three weeks of October compared with a record high for the month of July. U.S. riders on average have still paid 22% more for a ride so far in October compared with January, and 30% more than they did in October 2019.

Drivers are returning—just more slowly than demand for rides. An Uber spokesman said that “there are now more drivers on Uber in the U.S. than at any point during the pandemic,” but acknowledged that in many cities there are still labor constraints that have kept the nationwide average price high.

“Now there’s so many people that want to go out and do things” that drivers haven’t kept pace with how quickly riders have returned, Lyft President John Zimmer said in September in a talk on Clubhouse, the audio-based social network. A Lyft spokeswoman said Saturday the company expects things will fully resolve, but couldn’t predict when.

Both companies report third-quarter results next week and are expected to address the labor shortage and prices.

The sting to consumer wallets raises questions about where the drivers have gone, and mirrors the trend rippling across the wider economy, in which a smaller labor force is contributing to wage and price inflation and causing Americans to wait longer for goods and services.



Federal unemployment benefits have ended, but ride-share drivers haven’t surged back, with many now working in grocery delivery or other industries. Chicago’s I-90 highway.
-----------------------

The fact that prices remain close to where they were in the summer indicates that “there is still a supply shortage, even if the severity of the shortage is better than it was,” said Peter Martin, a YipitData research analyst with expertise in the ride-share industry. Longer trips and fewer rider discounts also contribute to higher average prices, he said.

Harry Thomas, an Uber driver at night for 3½ years, switched to grocery delivery when Covid-19 lockdowns began in the spring of 2020. He returned briefly to ride-share driving this past summer, but now is back to delivery work, along with some freelance web and design projects. He also is applying for full-time jobs.

“Uber has tried to entice me to come back and drive for them, but I rather like daytime hours,” said Mr. Thomas, who lives in San Antonio. He said he is concerned about safety and the possibility he could be sued under Texas law for helping someone access an abortion, even though Uber and Lyft have said they would cover legal costs for any driver in that situation.

Unemployment benefits were extended to gig and self-employed workers for the first time during the pandemic, resulting in about 15 million claimants at the height of the federal program last year. Claimants likely included ride-share drivers, as well as people who had sole proprietorships or were paid as contractors. The number of people collecting those benefits declined gradually as the economy reopened and states began ending the programs this summer.

Benefits for gig workers and the self-employed expired in remaining states in early September, though some states have taken weeks to work through backlogs of claims.

Despite the end of those benefits, and the expiration of a weekly $300 federal unemployment benefit added to regular state payments, many U.S. employers across the economy are struggling to fill positions. U.S. job openings have trended at record highs in recent months, exceeding the number of unemployed Americans seeking work, according to the Labor Department. That shows the labor market is perhaps tighter than the 4.8% unemployment rate indicates and that workers have more options.

A Goldman Sachs analysis found that driver earnings fell during the late spring and summer in states that ended enhanced unemployment benefits early compared with states that didn’t, similar to the trend YipitData found with prices. Taken together, the data suggests the effects of the September expiration of benefits might eventually trickle down to the rest of the country—albeit slowly.

Economists say there are multiple reasons the labor force is constrained. Worries about becoming ill with Covid-19 and pandemic-related disruptions in school and child care are likely keeping some people on the sidelines. Others retired early or stepped away from the workforce temporarily, perhaps to wait for a better work opportunity or to become a full-time parent.



Jim McIntire said he makes more money as a Chicago ride-share driver now working three days a week versus last year working five or six days a week.
-----------------------------------------

Meantime, openings in traditional jobs might have attracted some ride-share drivers.

“If you ever wanted a job in corporate America, it’s probably the easiest that it’s ever been,” said Brad Erickson, an analyst at RBC Capital Markets who covers Uber and Lyft.

Workers might also be migrating to other low-skill industries that have a lot of job openings. Many ride-share drivers turned to food and grocery delivery as demand for rides disappeared during the pandemic—and some are staying there. Nearly three-quarters of 4,000 DoorDash Inc. drivers surveyed in July said they didn’t want to share their vehicle, a staple of ride-hailing that won’t ever go away. Some drivers haven’t switched back to ride-share over concerns that demand might taper off again if the health crisis persists.

Jim McIntire, a 56-year-old Lyft driver in Chicago, said he chooses to drive because he likes the work and the money is good. He has been working three days a week and making more money than he did when he was working five or six days a week last year. “I have never, never made this much money” as a ride-share driver, he said, though he said he worries it might not last.

Uber and Lyft have poured millions of dollars into attracting drivers with bonuses. The companies are gradually pulling those incentives, particularly in areas where more drivers have returned.

Still, ending the labor shortage won’t bring prices back down to their pre-pandemic levels. Uber and Lyft are phasing out rider discounts to rein in costs and to show investors that they can grow without the dirt-cheap prices that were the hallmark of the past decade.

Write to Kim Mackrael at kim.mackrael@wsj.com and Preetika Rana at preetika.rana@wsj.com

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the November 1, 2021, print edition as 'Ride-Share Fares Stay High.'

Uber and Lyft Thought Prices Would Normalize by Now. Here’s Why They Are Still High. - WSJ

Share RecommendKeepReplyMark as Last Read


From: Glenn Petersen11/4/2021 5:27:20 PM
   of 238
 
Uber revenue up 72% from last year, but Didi stake contributes to big loss

PUBLISHED THU, NOV 4 20214:10 PM EDT
UPDATED MOMENTS AGO
Jessica Bursztynsky @JBURSZ
CNBC.com

KEY POINTS

-- Uber reported third-quarter financial results Thursday, which included a first-ever adjusted EBITDA profit.

-- The company reported a net loss of $2.4 billion for the quarter. That was largely attributed to a drop in the value of its investment holdings, particularly in Didi.

-- Uber said active U.S. mobility drivers were up nearly 60% year-over-year in the third quarter.

Uber reported its third-quarter results after the bell on Thursday. After an initial dip, shares were up around 2% in after-hours trading.

Here’s how Uber did, compared with expectations of analysts surveyed by Refinitiv:

Loss per share: $1.28 vs. 33 cents expected


Revenue: $4.8 billion vs. $4.4 billion expected

Uber reported a net loss of $2.4 billion for the quarter mostly because of a drop in the value of its investment holdings, particularly in Didi. The company said its stakes in Zomato, Aurora and Joby helped offset some of that loss. Uber posted a net loss of $1.09 billion in the same quarter a year ago.

Uber reported its first adjusted EBITDA profit, meeting its end-of-year target. (EBITDA refers to earnings before interest, taxes, depreciation and amortization.) The company posted an adjusted EBITDA profit of $8 million, up from an adjusted EBITDA loss of $507 million in the second quarter.

Uber’s Eats segment has continued to hold up despite pandemic restrictions easing in places across the world. The delivery business had bolstered the company to withstand Covid headwinds when people began ordering more at home during the pandemic.

Here’s how Uber’s largest business segments performed in the third quarter of 2021:

Mobility (gross bookings): $9.9 billion, up 67% year over year


Delivery (gross bookings): $12.8 billion, up 50% year over year

Delivery revenue has continued to outperform its core ride-hailing business at $2.24 billion, compared with $2.2 billion, though that gap is narrowing. Freight revenue brought in $402 million. In an update to shareholders, the company said that its number of delivery merchants grew to more than 780,000.

The company has struggled with supply and demand imbalances because of the pandemic, leading to surge pricing and increased wait times.

Uber showed signs of pandemic recovery in the U.S. The company’s active U.S. mobility drivers were up nearly 60% year-over-year in the third quarter, and improved through October with 10 consecutive weeks of driver growth since the end of August.

Uber CEO Dara Khosrowshahi said on the company’s earnings call that incidents of surge pricing have fallen nearly half, while wait times are on average less than five minutes.

“We’re comfortable that the bulk of our recruitment spending is behind us,” he added.

In another sign of the recovery, Uber said trips to and from airports grew 35% quarter-over-quarter and 203% year-over-year.

Uber reported 1.64 billion trips on the platform during the quarter, up 9% from the past quarter and 39% year over year. Monthly active platform consumers reached 109 million, up 8% from the prior quarter. Drivers and couriers earned an aggregate $8.6 billion during the quarter.

The company said it anticipates gross bookings between $25 billion and $26 billion in the fourth quarter. It also expects adjusted EBITDA of $25 million to $75 million.

Uber’s largest American competitor, Lyft, also reported financial results this week. Lyft beat Wall Street guidance on both the top and bottom lines and said drivers are coming back, though it missed active riders estimates.

Uber earnings Q3 2021 (cnbc.com)

Share RecommendKeepReplyMark as Last Read


From: Glenn Petersen2/8/2022 5:24:07 PM
   of 238
 
Lyft posts revenue beat but falls short on riders

PUBLISHED TUE, FEB 8 20224:06 PM EST
UPDATED 26 MIN AGO
Jessica Bursztynsky @JBURSZ
CNBC.com

KEY POINTS

-- Lyft reported fourth-quarter earnings after-the-bell on Tuesday.

-- Lyft reported 18.73 million active riders in the last quarter of 2021. It’s lower than the prior quarter and misses analyst expectations.

-- Lyft reported a net loss for the quarter of $258.6 million versus a net loss of $458.2 million in the same period of 2020.

Lyft reported fourth-quarter results after the bell on Tuesday. It beat estimates on adjusted earnings per share and revenue but said it had fewer active riders than in the prior quarter. Shares were down more than 6% in after hours trading.

Here are the key numbers:

Earnings per share: 9 cents, adjusted, vs 8 cents expected in a Refinitiv survey of analysts


Revenue: $970 million vs $940.1 million expected by Refinitiv


Active riders: 18.73 million vs 20.2 million expected, per StreetAccount


Revenue per active rider: $51.79 vs $46.54 expected, according to StreetAccount

Lyft reported 18.73 million active riders in the last quarter of 2021, up nearly 50% year-over-year but short of StreetAccount analyst expectations of 20.2 million riders for the quarter. It’s a decline from the third quarter when Lyft said it had 18.94 million active riders and not quite back to pre-pandemic levels. Lyft reported 22.9 million active riders in the fourth quarter of 2019, for example.

Lyft is expecting the omicron surge of the Covid-19 pandemic to weigh on first quarter results in 2022. It expects Q1 revenue between $800 million and $850 million. Analysts expected guidance of $989.9 million, per StreetAccount.

The company didn’t provide guidance on active rider projections. Analysts expect the company to report 21.7 million active riders in the first quarter of 2022, according to StreetAccount guidance.

“Despite short-term headwinds from omicron, we remain optimistic about full-year 2022,” Lyft’s new CFO Elaine Paul said in a statement.

Lyft revenue jumped 12% quarter-over-quarter to $969.9 million. That’s up 70% year-over-year thanks to easy comparables due to the Covid-19 pandemic. It also noted record revenue per active rider of $51.79, which is up 14% year-over-year.

Lyft reported a net loss for the quarter of $258.6 million versus a net loss of $458.2 million in the same period of 2020. The company said its loss included $164.2 million of stock-based compensation and related payroll tax expenses.

Lyft again posted an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) profit of $74.7 million. In the prior quarter, Lyft reported adjusted EBITDA of $67.3 million.

The company has struggled with driver supply and demand imbalances throughout the pandemic, leading to higher costs or long wait times.

Lyft CEO Logan Green said during its call with investors that its drivers have started to come back. Active drivers hit a new pandemic high, Paul said on the call. At the same time, ride ETAs improved by roughly 30% across all of its operating markets.

Another key marker of recovery, Lyft said airport rides more than doubled in the quarter compared to last year.

This is a developing story. Please check back for updates.

Lyft earnings Q4 2021 (cnbc.com)

Share RecommendKeepReplyMark as Last Read


From: Glenn Petersen2/9/2022 5:44:52 PM
1 Recommendation   of 238
 
Uber beats on revenue, says core business is bouncing back after omicron surge

PUBLISHED WED, FEB 9 20224:06 PM EST
UPDATED 21 MIN AGO
Jessica Bursztynsky @JBURSZ
CNBC.com

KEY POINTS

-- Uber reported fourth-quarter earnings after the -bell on Wednesday.

-- The company beat analyst estimates on revenue for the quarter and said it’s starting to bounce back from headwinds caused by the omicron coronavirus surge.

Uber reported fourth-quarter earnings after-the-bell on Wednesday. The company beat analyst estimates on revenue for the quarter and said it’s starting to bounce back from headwinds caused by the omicron coronavirus surge.

The company’s stock was up more than 6% in after hours trading.

Here are the key numbers:

Earnings per share: 44 cents, which is not comparable to estimates.


Revenue: $5.78 billion vs $5.34 billion, according to a Refinitiv survey of analysts.

The company reported a net income of $892 million, which includes a $1.4 billion net benefit, pre-tax, related to its equity investments.

Its adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, was $86 million. That’s up $540 million from the same quarter a year ago.

Here’s how Uber’s largest business segments performed in the fourth quarter of 2021:

Mobility (gross bookings): $11.3 billion, up 67% year-over-year


Delivery (gross bookings): $13.4 billion, up 34% year-over-year

The company’s delivery segment, which includes its Uber Eats business, has continued to hold up as food delivery becomes a part of regular life. In an update to shareholders, the company said that its number of delivery merchants grew to more than 825,000. Delivery revenue of $2.42 billion outperformed the $2.28 billion generated by its core ride-hailing business. Freight revenue was up 245% year-over-year to $1.08 billion.

In a statement, Uber CEO Dara Khosrowshahi said the omicron coronavirus variant weighed on its business, but numbers are quickly recovering.

“While the Omicron variant began to impact our business in late December, Mobility is already starting to bounce back, with Gross Bookings up 25% month-on-month in the most recent week,” Khosrowshahi said.

During the company’s earnings call, Khosrowshahi later said the company has maintained a strong driver supply even with the pandemic surge, leading to shorter wait times and fewer surge pricing instances.

Uber reported 1.77 billion trips on the platform during the quarter, up 8% from the prior quarter and 23% from 2020. Monthly active platform consumers reached 118 million, also up 8% in the quarter. Drivers and couriers earned an aggregate $9.5 billion in the quarter.

Another marker of pandemic recovery, airport gross bookings represented 13% of its mobility gross bookings. That marks a 24% increase over the third quarter and nearly 200% from the same period a year ago.

For its first quarter of 2022, Uber said it is projecting gross bookings of $25 billion to $26 billion. It anticipates adjusted EBITDA of $100 million to $130 million.

Uber’s largest American competitor Lyft reported their fourth-quarter financials Tuesday. The company beat estimates on adjusted earnings per share and revenue but said it had fewer active riders than in the prior quarter. It also warned that omicron was weighing on its first-quarter results.

Uber earnings Q4 2021 (cnbc.com)

Share RecommendKeepReplyMark as Last Read
Previous 10 Next 10