Uber on Tuesday reported revenue of $8.8 billion for the quarter ending in March, a 29% increase from the same period last year and beating Wall Street’s estimates.
The company’s continued strength comes despite lingering recession fears and stands in stark contrast to the slowing growth at other tech companies. It also sets Uber apart from its chief rival Lyft, which is undergoing significant layoffs and a shakeup in its C-Suite.
Uber said gross bookings surged 19% year-over-year to some $31.4 billion. Moreover, the number of trips during the quarter grew 24% compared to the same period last year.
“Uber is off to a strong start in 2023,” CEO Dara Khosrowshahi said in prepared remarks Tuesday. Even with higher interest rates and tighter access to capital, Khosrowshahi said “we are well positioned to improve our competitive position across our key markets.”
Shares for Uber surged more than 8% in pre-market trading Tuesday morning.
Jesse Cohen, a senior analyst at Investing.com, said in a note Tuesday morning that Uber reported “better-than-feared earnings despite ongoing macroeconomic headwinds.”
“The bottom line is that despite all the concerns plaguing consumer-facing tech companies, the truth is they have managed to perform surprisingly well against the current backdrop,” Cohen added.
Uber has so-far navigated its pandemic recovery far better than Lyft. While Uber diversified its business beyond ride-hailing by delivering meals and grocery items during the health crises, Lyft never did. Late last month, Lyft announced it would cut 26% of its workforce. Uber has largely avoided having to undergo the significant layoffs that have dominated headlines in Silicon Valley in recent months.
Lyft, which also recently replaced its CEO, is scheduled to report its quarterly earnings on Thursday after the bell.
In a call with analysts Tuesday morning, Khosrowshahi acknowledged the shakeup at Lyft. “As far as what we are seeing domestically with Lyft, obviously they’re going through a lot of changes,” he said.
However, he added: “It’s a very, very strong brand, it’s not going anywhere.”