Uber sees record gross bookings in March as bikers rebound
Uber CEO Dara Khosrowshahi appears on CNBC’s Squawk Box at the 2020 World Economic Forum in Davos, Switzerland on January. 22, 2020.
Adam Galica | CNBC
Uber Monday, said it had record gross bookings in March, signaling a pickup in demand for its ridesharing business..
The tech giant’s mobility unit was hit hard by the coronavirus pandemic last year, with lockdown restrictions causing demand for ridesharing services to collapse. It did, however, benefit from a boom in food delivery, which helped limit losses in 2020.
Uber said its mobility business had its best month since March of last year, with an annualized execution rate of $ 30 billion, up 9% from the previous month. Its delivery unit, meanwhile, hit a record annual rate of $ 52 billion in March, more than doubling from the previous year.
“As vaccination rates increase in the United States, we are seeing consumer demand for mobility recovering faster than driver availability, and consumer demand for delivery continues to exceed courier availability. “Uber said in a filing with the US Securities and Exchange Commission.
Last week, Uber announced it would spend $ 250 million on a unique “stimulus” package aimed at getting drivers back on the road. The money will be used for bonuses for drivers, guaranteed salary and the hiring of new Uber drivers. It comes as states begin to remove some of their pandemic restrictions and roll out vaccines.
Uber however remains heavily in deficit, losing nearly $ 6.8 billion Last year. There have long been doubts about how Uber’s business model works. But the company believes it can still become profitable by the end of 2021 based on Adjusted EBITDA. Lyft, Uber’s main rival in the United States, has made a similar pledge.
Last month Uber reclassified all 70,000 of its UK drivers as workers right to a minimum wage and other job protections after the country’s Supreme Court ruled that a group of Uber drivers should be classified as workers, not independent contractors. The move is should lead to higher costs for Uber and could have broader ramifications for the odd-job economy.