ber Technologies delivered a positive outlook for earnings in the current period, signalling the company plans to capitalise on robust ride demand without compromising profits by focusing on product changes, rather than incentives, to address the driver shortage.
Uber’s guidance comes after revenue rose 136% to $6.9bn in the first quarter, the company said on Wednesday in a statement. That beat the $6.1bn analysts had projected, according to data compiled by Bloomberg. Adjusted ebitda earnings were $168m in the quarter, surpassing the $135m analysts expected.
The driver shortage underscores the challenge of grappling with pandemic-induced swings in demand and reveals the fragility of a labour model ill-equipped to address them. By hiring drivers as independent contractors, ride-hailing companies were historically able to offer lower prices than traditional taxis.
Uber and Lyft, which reached profitability for the first time as public companies in 2021, are faced with balancing a post-pandemic recovery and profits after years of losses. Growth at Uber Eats has also helped funnel more drivers into its ride-hailing business. The ability to toggle between ferrying meals and people to make money has enticed drivers, many of whom shifted to food-delivery during the pandemic. “The success there has been very, very significant,” Khosrowshahi said. Active drivers in the US and Canada increased 70% in April compared with 2021, with new drivers jumping 121%, he said.