(News Bulletin 247) – The American group posted higher-than-expected accounts in the second quarter, thanks to increased demand for its VTC and home delivery service.

US technology stocks were at the forefront of the panic that swept global stock markets on Monday.

The Nasdaq 100 closed down 3% after its biggest opening drop in more than four years, Bloomberg reported. Technology companies, the quintessential growth stocks, are most exposed to the risks of an economic slowdown.

Uber did not escape this big blow to technology stocks, and plunged 6.6% in early trading before reducing its decline to less than 1% at the close.

Strong growth

But on Tuesday, the mood is more festive for the specialist in chauffeured vehicle services (VTC). Uber Technologies jumped 5.8% in early trading in New York, after revealing second-quarter results that exceeded expectations.

Over the period from April to the end of June, the American group posted a 16% growth in its turnover to reach 10.70 billion dollars, better than the 10.57 billion dollars anticipated by analysts.

Uber Technologies benefited from a bigger-than-expected increase in bookings for its ride-hailing service, particularly in Latin America and the Asia-Pacific region. Revenue from its mobility division jumped 25% year-on-year to $6.13 billion, beating analysts’ expectations for $5.94 billion in billings.

The company has capitalized on an increase in its driver supply while launching new technology initiatives such as a partnership with Waymo, Alphabet’s autonomous vehicle division, to offer rides with robotaxis. This initiative began in Arizona in late 2023.

Uber Technologies also announced on Monday a partnership with Chinese carmaker BYD to add 100,000 new vehicles to Uber’s existing fleet. The two companies will also collaborate on future BYD autonomous vehicles that will be deployed on the mobility platform.

Profits multiplied by 3

Uber Eats, its delivery service, also beat expectations, with revenue reaching $3.3 billion in the quarter. The company reassured consumers about the impact of price increases on its business, saying inflation was not stopping consumers from spending on deliveries. As evidence of demand, Uber expanded its home delivery partnership with retail giant Costco during the quarter.

Coming back to the accounts, the group’s adjusted operating profit soared by 71% to reach a record level of 1.57 billion dollars. Here too, Uber did better than analysts’ expectations, who were counting on a result of 1.51 billion dollars.

Uber also stepped up its efforts with net profit attributable to the group multiplied by more than 3 over a year and exceeded the symbolic threshold of one billion dollars at the end of June.

“Uber’s growth engine continues to run, with a sixth consecutive quarter of double-digit trip growth and record profitability,” said Uber CEO Dara Khosrowshahi.

For the current quarter, the Uber group is optimistic. The American group is expecting an operating profit of between 1.58 billion and 1.68 billion dollars in the third quarter.