That $200 puffer jacket that would be perfect for our fall wardrobe? Just not worth it, sadly. A $40 Uber ride back home from the bar? Well now, that’s a necessity.
What happened: Uber’s 156 million monthly active users averaged a record number of trips taken over a three-month period as the ride-share giant bucked concerns about users cutting back on costly trips and takeout. Shares surged ~11% on the good news.
- Like a driver who didn’t notice you standing on the curb, Uber also blew past analyst projections, posting US$1.02 billion in profits instead of the expected $654 million.
Why it matters: Strong earnings by the likes of Uber and food delivery app DoorDash suggest that demand for things like ride-hailing and food delivery is strong enough to withstand a spending crunch that has come for other categories like in-restaurant dining and retail.
- “The Uber consumer has never been stronger,” Uber CEO Dara Khosrowshahi claimed. “We’re not seeing any softness or trading down across any income cohort.”
Zoom out: Uber plans to continue to stoke demand with new services, like expanding its grocery and retail delivery, building out its advertising wing, connecting riders with varied transit options, and recent pushes into EVs and self-driving vehicles.—QH