(Reuters) -Uber Technologies Inc on Wednesday stated it had no want to enhance incentives additional to lure extra drivers and forecast a robust second quarter, a day after rival Lyft stated it wanted to spend extra for labor within the coming months.
The experience hail large introduced ahead its outcomes to Wednesday morning from the afternoon after Lyft Inc shares sank 26% on Tuesday when its projected working earnings fell in need of expectations on greater driver pay, dragging down Uber’s inventory in its wake.
Uber shares dropped 9% in early buying and selling, as analysts stated buyers have been shifting out of shares of loss-making corporations whose consumer-facing companies may come beneath additional strain as inflation rises.
“Uber has a extra diversified income base, given Uber Eats, however the points that Lyft raises may but influence Uber too, particularly on the associated fee aspect,” AJ Bell Investment Director Russ Mould stated.
Lyft on Tuesday stated it might have to make investments extra closely to stability provide and demand within the coming quarters, consuming into its already slim working earnings. Lyft shares have been down 30% in morning buying and selling, wiping off greater than $3.2 billion in market worth since Tuesday’s shut.
Uber on Wednesday additionally reported a dip in month-to-month lively customers within the first three months of the 12 months from the earlier quarter, a typical pattern within the trade in the course of the colder winter months, however was eager to set itself aside from its smaller competitor.
“You heard I feel final night time one in all our rivals within the U.S. is having challenges,” Uber Chief Executive Dara Khosrowshahi informed analysts throughout a post-earnings name in reference to Lyft.
Khosrowshahi stated Uber’s driver base was at a post-pandemic excessive, including that the corporate anticipated that pattern to proceed with out vital incentive investments.
Hargreaves Lansdown analyst Susannah Streeter stated Uber had been in a position to higher retain and appeal to drivers by providing earnings alternatives in not simply ride-hail, however meals supply in the course of the pandemic.
“There has been some aid amongst buyers that for now Uber isn’t in fairly the identical susceptible place of getting to provide steep incentives to lure drivers again,” Streeter stated.
Uber executives stated drivers on the highway for greater than 20 hours per week have been incomes a median of $39 an hour within the first quarter, together with suggestions and a gasoline surcharge. Lyft on Tuesday put common March driver earnings at $24 together with suggestions, however excluding a 55 cent per-ride gasoline cost.
Uber reported first-quarter adjusted EBITDA, which excludes stock-based compensation and different bills, of $168 million. That surpassed the common analyst expectation of $132 million, in accordance to IBES information from Refinitiv.
The firm’s second-quarter steering additionally topped analyst expectations.
Ride-hail income, which took a tumble in the course of the pandemic, for the primary time outpaced supply income in an indication of journey rebound. April mobility gross bookings exceeded 2019 ranges in all world markets, Uber stated.
The return of riders did not come on the expense of Uber Eats prospects, who continued ordering meals deliveries from eating places.
Uber additionally stated it anticipated to generate “significant optimistic money flows” for the total 12 months, which might mark the primary time it achieved this objective within the firm’s 13-year historical past.
However, on a web foundation, Uber’s first-quarter loss surged to $5.9 billion from $108 million a 12 months in the past, pushed by $5.6 billion in drops within the worth of stakes in different, poorly performing corporations, primarily Chinese ride-hail firm Didi Global Inc.
Uber Chief Financial Officer Nelson Chai stated Uber had the liquidity to sit on the loss-making positions and watch for a greater time to promote them.
(Reporting by Tina Bellon in Austin, Texas and Nivedita Balu in Bengaluru; modifying by Peter Henderson, Richard Pullin and Chizu Nomiyama)
