Uber is Growing and has Enough Drivers, Competitor Lyft is Not

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Taxi and delivery app Uber again drove around more people in the first quarter of this year. The revenue of the taxi service shot up after the corona rules were abolished in many countries.

 

The number of drivers also increased again without Uber taking action itself. However, it was different with industry peer Lyft. That company indicated that it had to allocate more money to lure drivers.

Uber recently secured $26.4 billion in bookings for taxi rides and meal deliveries. Converted that is about 25.1 billion euros. Since the corona crisis, the food and grocery delivery branch has been the largest, but the taxi branch is now approaching again. Uber Freight, a platform for linking truck drivers to loads to be transported, also grew significantly. Again, this was largely due to a takeover.

Uber’s revenue from all those bookings was $6.9 billion, more than double the year before. Operating profit came in at $168 million, but the bottom line was a loss of $5.9 billion. This was entirely due to one-off setbacks. For example, Uber’s interests in Grab, Aurora and Didi lost $5.6 billion in value. Uber also lost $359 million in equity compensation.

Rival Lyft already came up with figures after the market on Tuesday and struggled to find enough drivers. As a result, that company, which only operates in North America, was disappointed with a lower expectation for earnings in the second quarter. The company also had to give drivers more money due to the sharp rise in petrol prices.

Lyft did better than expected in the first quarter, but investors were not satisfied. In so-called premarket trading, the share fell in value by more than a quarter.

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