Uber Reports Rebound in 2022 First-Quarter Outlook, Stock Up More Than 6 Percent

Uber has been on a downward spiral since February 2019, recording losses after every quarter. Apart from the global health crisis, the ride-hailing app company is no stranger to controversy, with industry insiders criticizing its business model. On Monday, Uber boosted its financial look for 2022, citing a faster than expected rebound.
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Photo: Uber
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The ride-hailing giant’s stock rose by more than 6%, as its competitor, Lift’s shares were up by 7%, CNBC pointed out. During an SEC filing, Uber said it expected an EBITDA between $100 million to $130 million but now expects an adjustment between $130 million to $150 million.

Last year November, the ride-hailing giant reported a net loss of $2.4 billion for the quarter mainly due to a drop in the value of its investment holdings, and more specifically in Didi. Uber recorded a net loss of $1.09 billion for the same quarter in 2020.

The company’s mobility demand had significantly improved through February. Its records of trips have shot to 90% compared to figures in 2019. The filings show that the gross bookings are 95% recovered.

Uber CEO Dara Khosrowshahi noted that the hailing cab’s business had bounced back faster than expected after the global pandemic. He added that they are witnessing a healthy demand growing back across the board and are eager to have consumers back on the road again.

The ride-hailing app company is looking forward to the best season since airport bookings by the end of last month were up 50% month on month.

The number of active users on the app had significantly dropped by 50% after the onset of the global health crisis. In 2020, Uber reported that it had an average of 55 million clients each month from April to June, down from 99 million in 2019.

The report comes after health officials worldwide began to ease travel restrictions that prevented most clients from accessing the service.
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About the author: Humphrey Bwayo
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Humphrey is a car enthusiast whose love and passion for automobiles extended into collecting, writing, driving, and working on cars. He got his passion for cars from his Dad, who spent thousands of hours working on his old junky 1970 E20 Toyota Corolla. Years later, he would end up doing the same with a series of lemons he’s owned throughout his adult life.
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