Uber says doesnt need to pay drivers more, forecasts profit ahead of Wall Street

div classBodysc17zpet90 cdBBJodivpBy Tina Bellonp

pReuters – Uber Technologies Inc on Wednesday beat expected operating earnings and forecast a strong second quarter, saying it had no need to offer extra incentives to boost its driver supply, unlike its smaller rival Lyft.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe ride hail giant brought forward its results to Wednesday morning from the afternoon after Lyft Inc shares sank 26 on Tuesday when it said it needed to pay more to get drivers, dragging down Ubers stock in its wake.p

pUber reported a dip in monthly active users in the first three months of the year from the previous quarter, a common trend in the industry during the colder winter months, but was keen to set itself apart from its smaller competitor.p

p“Our driver base is at a postpandemic high and is more engaged on Uber than on other platforms. Importantly, we expect this trend to continue without significant incremental incentive investments,” Uber Chief Executive Dara Khosrowshahi said in prepared remarks.p

pUber reported firstquarter adjusted EBITDA, which excludes stockbased compensation and other expenses, of 168 million. That surpassed the average analyst expectation of 132 million, according to IBES data from Refinitiv.p

pUbers secondquarter adjusted EBITDA forecast of between 240 million and 270 million also topped the average analyst expectation for 237 million.p

pAt 6.9 billion, total firstquarter revenue rose 136 and exceeded estimates for 6.13 billion. p

pUber also said it expected to generate “meaningful positive cash flows” for the full year, which would mark the first time it achieved this goal in the companys 13year history. p

pHowever, on a net basis, Ubers firstquarter loss surged to 5.9 billion from 108 million a year ago, driven by 5.6 billion in drops in the value of stakes in other, poorly performing companies, primarily Chinese ridehail company Didi Global Inc.p

pUber Chief Financial Officer Nelson Chai in a statement said Uber had the liquidity to sit on the lossmaking positions and wait for a better time to sell them.p

pUbers ridehail business appears on track to top prepandemic levels in the second quarter, with April mobility bookings exceeding 2019 levels in all global markets.p

pThe return of riders did not come at the expense of Uber Eats customers, who continued ordering food deliveries from restaurants.p

pBut monthly active platform consumers, a metric that includes both ridehail and food delivery users, dropped from 118 million in the fourth quarter to 115 million in the three months ending March 31.p

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pp Reporting by Tina Bellon in Austin, Texas editing by Peter Henderson and Richard Pullinp

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