Uber raised its first quarter guidance Monday (March 7) and said its ride-hailing business is bouncing back from the omicron variant’s disruptions, The Wall Street Journal reported.
The ride-sharing giant raised its guidance for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), from between $100 million and $130 million to between $130 million and $150 million.
This metric shows, according to the company, that operations are moving towards Uber being profitable.
WSJ wrote that Uber has seen a boost to its ride-hailing and delivery businesses compared to the last quarter of 2021, when omicron hit and threw off business. The report notes that gross bookings for airports were up 50% at the end of February compared with a month earlier, and the company also thinks the upcoming travel season will be strong.
The report noted that shuttling people to and from airports is a big part of Uber’s business, with 11% of the company’s bookings from 2021 involving airport trips, compared to 15% from 2019.
CEO Dara Khosrowshahi said this showed the strength of the company.
“We’re seeing healthy and growing demand across all use cases, highlighting just how eager consumers are to get moving again,” he said.
Read more: Uber Plans to Expand German Delivery Service to 70 Cities This Year
PYMNTS wrote recently that Uber has been growing its German delivery business, adding 70 new cities by the end of the year.
That will be an improvement on the current roster of 14 cities.
Demand was the reason for the growth, according to Eve Henrikson, general manager in the region for Europe, the Middle East and Africa, which has given the company the green light to keep expanding.
According to Henrikson, Uber Eats was able to give restaurants a network of couriers even if they didn’t have a fleet. That’s in contrast to rival Just Eat Takeaway, which relies on businesses having their own delivery riders.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More