Uber rises on excellent profit projection as ridesharing resurgence defies inflation.
- Uber Technologies’ shares rose 13% on Tuesday after it anticipated fourth-quarter operating profit beyond Wall Street projections, counting on cost management and increased trip demand as travellers spend more.
- Chief Executive Dara Khosrowshahi noted that after two years of COVID-19 lockdowns, customers are paying more on services.
- Khosrowshahi told analysts that ridesharing and food delivery demand is strong even with Europe’s rising cost of living.
- Airport travels helped Uber’s monthly active users rise 14%, surpassing September 2019, while ridesharing income surged 73% in the third quarter.
- As Khosrowshahi warned of a strong currency hurting overseas revenues, Uber is cutting employment and costs to boost profitability.