Uber jumps 4% after reporting record bookings for March driven by delivery business
About CEO Dara Khosrowshahi.
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- Uber rose up to 4% on Monday after posting record gross bills last month.
- Uber’s business surge in March was due to record Uber Eats billings and the heaviest hail bookings since March 2020.
- “As vaccination rates rise in the US, we are finding that consumer demand for mobility is recovering faster than the availability of drivers,” said Uber.
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Uber rose up to 4% on Monday after a business update revealed it had record gross billings in March.
The boost in business was driven by record gross bills in the delivery business, which exceeded an annual gross booking rate of $ 52 billion last month, up more than 150% year over year.
Uber’s ride-hail business was also strong in March, hitting its best since March 2020, the start of the COVID-19 pandemic lockdowns spread across the country. Uber said its hail business exceeded its annual gross booking rate of $ 30 billion, with average daily gross bookings increasing 9% month-over-month.
Uber sees demand continue to be strong as more Americans get vaccinated and the economy reopens fully. According to Bloomberg’s vaccine tracker, nearly a third of the US population has already received at least one dose of COVID-19 vaccine.
“As vaccination rates rise in the US, we are finding that consumer demand for mobility is recovering faster than driver availability, and consumer demand for delivery continues to exceed courier availability,” Uber said in an SEC filing 8-K report.
To make up for the driver shortage, Uber said last week it was offering $ 250 million temporary driver incentives to get more Uber drivers back on the road.
Uber anticipates business will continue to grow as the economy recovers and continues to expect quarterly adjusted EBITDA profitability in 2021, according to the SEC filing.