On Tuesday, Uber Technologies Inc (NYSE:UBER) posted a mixed first quarter report. Although Uber slightly surpassed revenue estimates, it posted an unexpected loss.
First Quarter Highlights
For the three months ended on March 31st, revenue grew 15% to $10.13 billion, slightly surpassing LSEG’s estimate of $10.11 billion. Gross bookings amounted to $37.65 billion which is below StreetAccount’s estimate of $37.93 billion.
The mobility segment grew 25% YoY as gross bookings amounted to $18.67 billion with revenue rising 30% YoY as it brought in sales of $5.63 billion.
The delivery business reported gross bookings grew 18% YoY $17.7 billion while revenue only grew 4% YoY to $3.21 billion. Uber noted that the delivery margin was harmed by business model changes.
Freight business brought in $1.28 billion as it contracted 8% YoY.
Unexpectedly, Uber’s net loss widened to $654 million, or a 32-cent loss per share, while LSEG expected a 23-cent loss, as long-running legal fights took a toll on its bottom line. But, adjusted EBITDA rose 82% YoY to $1.38 billion.
Uber gathered 149 million monthly active platform consumers, marking a YoY rise of 15%. Completed trips also rose 21% YoY to 2.6 billion.
Second Quarter Outlook
For the current quarter, Uber guided for gross bookings in the range between $38.75 billion and $40.25 billion, with StreetAccount’s estimate of $40 billion being in the upper part of the range.
Instacart partnership
Thanks to Uber Eats, the grocery delivery company Instacart, Maplebear Inc (NASDAQ:CART), announced this week it is getting restaurant delivery. Instacart has been investing heavily in order to compete with DoorDash (NASDAQ:DASH), Amazon.com (NASDAQ:AMZN) and Walmart (NYSE:WMT). It’s no secret that DoorDash is significantly ahead in restaurant delivery. Moreover, DoorDash can tout the growth of its grocery business which is why it is a threat for Instacart. Instacart also reported its quarterly results on the same day, that reflected a strong start of the year. Instacart posted revenue growth of 8% as sales amounted to $820 million, along with a net income of $130 million. Unlike Uber, Instacart posted an earnings beat.
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