Uber shares jump after improved earnings outlook

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Uber says trips have recovered 90% and mobility gross bookings recovered 95% in February compared with the same period in 2019

Uber Technologies raised its forecast for earnings in the current quarter, defying concerns of a lasting effect on ride-hailing demand due to Omicron. The shares jumped about 7% in New York as the market opened.

“Our mobility business is bouncing back from omicron much faster than we expected,” CEO Dara Khosrowshahi said in a filing with the Securities and Exchange Commission. “Whether for travel, commuting, or going out at night, we’re seeing healthy and growing demand across all use cases, highlighting just how eager consumers are to get moving again.”

The rosier outlook accounts for a rebound in demand for ride-hailing services which had waned at the start of the year during the height of the fast-spreading omicron variant. Uber said trips have recovered 90% and mobility gross bookings recovered 95% in February compared with the same period in 2019. Meanwhile, Uber’s delivery business, which includes Uber Eats, continued to see strong demand with an annualised run rate for bookings reaching a record high in February.

 

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