Dara Khosrowshahi, CEO of Uber Technologies Inc. (NYSE:UBER), is convinced that the company’s twin mission in ride-hailing and delivery will set it apart from competitors in the event of a recession. Khosrowshahi stated in an interview on Television that the firm is truly firing on all cylinders after the company produced results above analyst expectations. He cited Uber’s record gross bookings and revenue, which more than doubled in the second quarter to $8.2 billion. In New York, Uber’s shares rose 18% to $28.99.
Khosrowshahi’s upbeat tone stands out in a difficult moment for technology companies, as increasing inflation fuels fears of declining consumer spending on food delivery and ride services. Uber (NYSE:UBER) Eats’ revenue increased by 25% year-over-year, and Khosrowshahi stated that the company’s primary objective for the remainder of 2018 would be to increase delivery segment profitability. Both the United States and the rest of the world are expanding at a rate of over 40%, which is healthy, Khosrowshahi remarked. We are firm believers in delivery, but our primary concern is profitability.
Khosrowshahi stated that the number of new drivers on the platform increased during the second quarter and that wait times and surge pricing will continue to improve as driver supply returns to equilibrium with consumer demand. In New York, Uber’s stock rose 18% to $28.99. The company reported that 122 million individuals used its platform every month, above analyst expectations of 120.5 million. The business anticipates the momentum will continue into the third quarter, with an adjusted EBITDA of $440 million to $470 million. Uber (NYSE:UBER) produced $364 million in adjusted EBITDA and $382 million in free cash flow in the second quarter, with an emphasis on profitability.
The CEO also addressed the newly announced agreement between Amazon.com, Inc. (NASDAQ:AMZN) and Grubhub to deliver food to Prime members. He stated we see no significant impact in the United States. Because of our global scope, we have several opportunities to collaborate with various parties. Amazon is a terrific firm, and we will collaborate with them in every way possible.
Featured Image: Megapixl @Toxawww
