Uber to report Q2 earnings as inflation stings consumers

Uber (UBER) will report its Q2 earnings ahead of the opening bell Tuesday, as the ride-sharing giant continues to recover from its dramatic fall during pandemic lockdowns.

Here’s what Wall Street expects from the company during the quarter, as compiled by Bloomberg, compared to how it performed in the same quarter last year.

  • Bulk bookings: $28.8 billion expected versus $21.9 billion last year

  • Mobility gross bookings: $12.5 billion expected versus $8.6 billion last year

  • Delivery gross bookings $14.4 billion expected versus $12.9 billion last year

  • Earnings per share: -$0.14 expected versus -$0.12 last year

Uber’s revenue has been on an upward trajectory for the last two years, even though the pandemic hammered its ride-sharing business. At the time, Uber invested heavily in its delivery arm, ensuring customers could order food from a litany of restaurants and corner stores.

The move buoyed the business when the number of riders and drivers was collapsing as a result of COVID lockdowns.

But inflation — and the steep rise in gas prices — is hitting consumers and drivers in their wallets. Riders looking to save cash may turn to alternatives including mass transit, while other consumers may not order so much delivery from Uber Eats. I’ve certainly started cutting back on both taking cabs and ordering in.

Uber will report its Q2 earnings before the bell Monday. (AP Photo/Nam Y. Huh)

Drivers meanwhile, have been stung by high-flying fuel costs, although they’ve come back down from their peaks. In March, to offset the cost of fuel, Uber implemented gas surcharges on both Uber rides and orders through Uber Eats.

In June, the company also reintroduced its UberX Share service that provides riders with a discount for sharing rides with other users. The company initially suspended the service at the onset of the pandemic.

More recently, Uber has been struck by backlash from an investigation by the International Consortium of Investigative Journalists into the company’s behavior prior to the tenure of current CEO Dara Khosrowshahi. In response to the investigation, Uber released a statement indicating the changes that it has since made to the business including investing in safety and pledging to run a zero-emissions fleet.

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