Dive Brief:
- Uber reported strong growth Tuesday in ride-hailing and delivery trips in the company’s second quarter of 2023, with monthly active platform users up 12% year over year, defined as the number of people booking rides or meal deliveries through its app.
- Total trips worldwide grew 22% year over year in the quarter while the number of active drivers increased 33%, Uber CEO Dara Khosrowshahi said in prepared remarks.
- Uber recorded its first-ever operating profit in the quarter, which Khosrowshahi attributed to “a combination of disciplined execution, record audience, and strong engagement.” However, its Q2 results showed slightly lower growth in total trips and active monthly users than in the first quarter of this year.
Dive Insight:
According to Khosrowshahi, Uber has achieved a better balance of riders and drivers, allowing the company to focus on growing rider numbers and increasing use of the platform among riders. “Our mobility business continues to fire on all cylinders, delivering strong and profitable growth,” Khosrowshahi said.
In May, Uber entered a new, multiyear strategic partnership with Waymo to make its autonomous vehicles available on Uber, beginning later this year in Phoenix. “We believe Uber is the natural choice for AV operators like Waymo looking to deploy their technology in the real world,” Khosrowshahi said. “Our scale means we can bring unparalleled consumer demand in addition to relationships with hundreds of thousands of merchants. In turn, that means our AV partners will ensure their vehicles are highly utilized, resulting in better economics for them.”
Khosrowshahi said the company expanded its pilot electric vehicle program with Ford, offering flexible leases on Ford Mustang Mach-E models to drivers in Los Angeles. The company also made changes designed to support EV driving for Uber drivers by adding smart-charging features and an improved EV charging map to the driver app, he said. According to an Uber spokesperson, Uber drivers use electric vehicles over eight times more than the general population in the U.S.
On the delivery side, Uber grew the number of active merchants on its Uber Eats platform in the U.S. and Canada by 9%, with Domino’s Pizza joining the fold globally in July. Khosrowshahi noted that Domino’s was “the largest enterprise merchant not currently operating on any delivery platform in the U.S.”
Looking ahead, Uber CFO Nelson Chai said the company expects total trips to grow at least 20% year over year in the third quarter.
