The company’s decision follows a record free cash flow of $8.5 billion in the past 12 months and builds on the $7 billion buyback authorisation announced earlier in 2024.

“This underscores our confidence in the business,” Chief Executive Dara Khosrowshahi said, positioning the company for sustained shareholder returns.

Uber’s performance in the second quarter was bolstered by its $9.99-a-month Uber One subscription service, which recorded a 60% year-on-year increase in membership to 36 million users. 

More than one-third of total bookings now come from these members, who generate triple the profit of single-service customers by engaging across rides, food delivery, and grocery services.

The company’s targeted promotions are proving effective. A one-week discount campaign in May alone attracted 500,000 new members. Other initiatives, such as the $2.99-a-month “Price Lock Pass,” have also encouraged habitual use by offering fixed fares on selected routes in over 10 major cities across the US and Brazil.

Uber’s second-quarter gross bookings rose 18.2%, driven by a 24.6% jump in its delivery segment and 18.8% growth in mobility services. The company now expects third-quarter gross bookings between $48.25 billion and $49.75 billion, well above analysts’ average projection of $47.3 billion. 

Adjusted core profit is forecast at $2.19 billion to $2.29 billion, with net income for the quarter at 63 cents per share, up from 47 cents a year ago.

While Uber does not manufacture autonomous vehicles, it is aggressively building partnerships in the self-driving sector, counting over 20 alliances with companies such as Lucid, Nuro, Waymo, WeRide, and Pony.ai. Plans include deploying 20,000 Lucid Gravity robotaxis from 2026 under a $300 million investment. 

With the integration of routing, payments, and demand aggregation into partner fleets, Uber aims to remain the platform at the centre of the autonomous mobility market.

Shares dipped around 1.5% in pre-market trading on Wednesday, following initial volatility. However, Uber’s stock remains one of the S&P 500’s strongest performers this year, up 48% to date.

The post Uber Launches $20 Billion Buyback as Loyalty Programme Drives Bookings Surge appeared first on Tech | Business | Economy.

This multi-year agreement initially targets Europe and Latin America, with plans to expand to the Middle East, Canada, Australia, and New Zealand. The initiative aims to make EVs more accessible to Uber drivers through competitive pricing and financing options.

Uber, an on-demand mobility platform, and BYD, an EV manufacturer, seek to reduce the overall cost of EV ownership for drivers. 

Despite Uber drivers adopting electric vehicles at a higher rate than private car owners, financial barriers are still a challenge. Providing affordable BYD models known for their great battery performance and lower maintenance costs, the partnership hopes to encourage more drivers to switch to electric.

Additional incentives under discussion include discounts on charging, vehicle maintenance, insurance, financing, and leasing. The companies are also exploring the integration of BYD’s autonomous-capable vehicles into Uber’s fleet, enhancing the prospect of self-driving technology on a global scale.

The partnership aligns with growing international actions to address climate change by reducing greenhouse gas emissions through transportation electrification. 

According to Uber CEO Dara Khosrowshahi, transitioning to EVs allows drivers to deliver greatly higher emissions benefits due to their increased road presence. This partnership supports Uber’s goal to be emission-free in U.S. and Canadian cities by 2030 and also introduces millions of passengers to eco-friendly rides.

“As the largest global agreement of its kind, we’re thrilled about the benefits this partnership will deliver for drivers, riders, and cities,” said Dara Khosrowshahi. 

“When an Uber driver makes the switch to an EV, they can deliver up to four times the emissions benefits compared to a regular motorist, simply because they are on the road more. Many riders also tell us their first experience with an EV is on an Uber trip, and we’re excited to help demonstrate the benefits of EVs to more people around the world.”

BYD’s executive team is positive about the collaboration. They noted its potential to accelerate urban mobility electrification and make sustainable transportation widely accessible.

“Uber and BYD share a commitment to innovate towards a cleaner, greener world, and I am excited to work together towards that future,” said Chuanfu Wang, chairman and president of BYD.

Stella Li, executive vice president of BYD and CEO of BYD Americas, also commented, “We are elated to join forces with a global leader like Uber to not only accelerate the transition to electric vehicles but also to make green transportation accessible and affordable for everyone. This collaboration marks a new era in the electrification of urban mobility, and we look forward to seeing our cutting-edge EVs become a common sight on the streets of cities worldwide.”

The post Uber Partners BYD to Roll Out 100,000 Electric Vehicles Across Key Global Markets appeared first on Tech | Business | Economy.

Highlights from the report 

• The company’s Gross Bookings grew 35% year-over-year (“YoY”) to $26.4 billion, or 39% on a constant currency basis, with Mobility Gross Bookings of $10.7 billion (+58% YoY) and Delivery Gross Bookings of $13.9 billion (+12% YoY). Trips during the quarter grew 18% YoY to 1.71 billion, or approximately 19 million trips per day on average.

• Revenue grew 136% YoY to $6.9 billion, or 141% on a constant currency basis, with Revenue growth significantly outpacing Gross Bookings growth primarily due to the acquisition of Transplace by Freight, a change in the business model for our UK Mobility business, and an easier comparison in Q1 2021 due to the accrual for historical claims in the UK.

• Net loss attributable to Uber Technologies, Inc. was $5.9 billion, which includes a $5.6 billion headwind (pre-tax) relating to Uber’s equity investments, primarily due to aggregate unrealized losses related to the revaluation of Uber’s Grab, Aurora, and Didi stakes. Additionally, net loss includes $359 million in stock-based compensation expenses.

• Adjusted EBITDA of $168 million, up $527 million YoY. Adjusted EBITDA margin as a percentage of Gross Bookings was 0.6%, up from (1.8)% in Q1 2021. This translates to 7.6% on a YoY incremental margin basis, as a percentage of Gross Bookings.

• Net cash provided by (used in) operating activities was $15 million, up $626 million YoY. Free cash flow, defined as net cash flows from operating activities less capital expenditures, was an outflow of $47 million, improving $635 million YoY.

• Unrestricted cash and cash equivalents were $4.2 billion at the end of the first quarter.

Speaking on the result, Dara Khosrowshahi, CEO of Uber said:

“Our results demonstrate just how much progress we’ve made navigating out of the pandemic and how the power of our platform is differentiating our business performance.

In April, Mobility Gross Bookings exceeded 2019 levels across all regions and use cases. There’s never been a more exciting time to innovate at Uber and we’re focused on executing our strategy to grow our platform profitably.”

“We are pleased with our Q1 results, with outperformance of our quarterly guidance and strong incremental margins,” said Nelson Chai, CFO. “With free cash flow approaching breakeven in Q1, we now expect to generate meaningful positive free cash flows for full-year 2022.”

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