Uber Technologies’ most recent fourth-quarter results, released Wednesday (Feb. 7), show increased cross-selling among members taking advantage of mobility and delivery, and increased use of the platform with a growing roster of users.
Supplementals released by the company detail that the active consumers were up 15% year on year to 150 million.
Trips taken, overall, were up 24% to 2.6 billion, which means that the monthly trips per active user stood at 5.8 in the most recent quarter, up from 5.4 a year ago, Uber reported.
Delivery bookings were up 17% year on year to $17 billion, representing an acceleration from the 14% year-on-year growth seen in the fourth quarter of 2022.
Freight revenues declined by 17% to $1.3 billion, though management noted that the slowing rates of decline represented an encouraging sign with some improvement in spot rates, but company materials note that “it’s too soon to assume the glimmers of light will turn into a trend.”
Uber has 6.8 million monthly drivers and couriers who earned nearly $62 billion across the platform up 24% YoY on a constant currency basis. Active drivers were up 30% year on year, CEO Dara Khosrowshahi said in his prepared remarks. And as he noted during the call, “average engagement [of those drivers] was up 10% … drivers who are earning … $33 per utilized hour are staying on the platform for longer.”
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Members Are Taking More Rides and Ordering More Deliveries
Uber One membership, per the remarks, now represents nearly 50% of U.S. Delivery Gross Bookings, up 10 percentage points year on year. There are 19 million members, the CEO said, adding that “members buy more. They stay longer and just mathematically, members will account for higher percentage of gross bookings, which means a higher percentage of customers are going to stick around for longer and transact more frequently.” The number of consumers who order from Uber Eats who also order groceries has grown to 14% year on year, said Khosrowshahi.
Within the delivery segment, said Khosrowshahi, grocery represents a $7 billion run rate business. And in response to analysts’ questions about the company’s advertising business, with reach a $900 million run rate in the most recent quarter, management stated that advertisers are earning eight times their investment, and more than half a million businesses are advertising across the company’s platform, up 75%.
