Uber raises Q1 profit forecast

Industry

Uber Technologies Inc. raised its outlook for first-quarter core profit on Monday, as its ride hailing business was recovering faster than expected on the back of a surge in airport rides and an increase in the number of offices being reopened.

The company also said customers continued to order food at a high rate in February.

Shares of the ride hailing company were down about .85 percent in early trading Monday.

Uber said in a filing it now expected adjusted earnings before interest, taxes, depreciation and amortization of $130 million to $150 million in the first three months of the year, up from $100 million to $130 million it previously projected.

“Our mobility business is bouncing back from Omicron much faster than we expected,” Uber Chief Executive Dara Khosrowshahi said. He said consumers were eager to book rides for travel, commuting or nightlife.

Khosrowshahi said gross bookings for airports, among the most profitable routes for Uber, were up more than 50 percent month-on-month in February and headed to be one of the strongest ever in the upcoming travel season.

Several companies are also bringing staff back to offices more than two years after the pandemic forced many to shift to working from home.

During the pandemic’s peak, Uber’s delivery business thrived as consumers became more dependent on ordering food and groceries online.

Ride-hail trips in February remain only 10 percent below pre-pandemic 2019 levels in the same month, Uber said. February mobility gross bookings had recovered to 95 percent compared with February 2019.

On the delivery side, gross bookings reached an all-time high in February, the company said.

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