Uber’s First Positive Cash Flow and a Strong Second Quarter
For the first time ever, Uber Technologies Inc. posted a net cash flow that didn’t line up with a loss. The company reported a $382 million free cash flow in Q2, beating the $263.2 million forecast by analysts.
Stock‑Market Reactions
- Uber’s shares jumped 15 % to $28.20 (S$38.98) on Aug 2.
- The rally helped Lyft Inc. climb 11 % and DoorDash up 4 %.
- Investors are treating the news like a “new‑adventure” bonus point for the ride‑share giant.
Drivers & Delivery Agents Ramp‑Up
Uber added more people to its driving and delivery crew, topping an all‑time five‑million‑strong fleet. The company said this move was met with enthusiasm even when fuel prices decided to climb.
CEO Dara Khosrowshahi told reporters, “We’re seeing a big rush of new drivers who are eager to earn. Over 70 % of them hopped on board in response to inflation and higher living costs.”
Ride‑Share Revenue Wows
Trips surged again thanks to office reopenings and a fresh wave of travel requests. Ride‑share take‑out was 120 % higher, hitting $3.55 billion—a figure that blew past Wall Street’s expectations.
Delivery Growth Tiers ‑ Still Strong
Though Uber Eats’ growth slowed from the prior quarter, the company believes that ordering will become a habit for consumers. Delivery revenue rose 37 % to $2.69 billion.
Commentary from Analysts
- Rohit Kulkarni at MKM Partners remarked, “These results are especially impressive given the mounting macro and micro concerns.”
Financial Outlook
- Adjusted EBITDA is projected at $440 million–$470 million, ahead of the $383.95 million estimate.”
- Net loss for the quarter remains a substantial $2.6 billion, largely due to investments such as in India’s Zomato.
- Uber is expected to divest its stake in Zomato next Wednesday, potentially easing capital pressure.
What’s Next?
Lyft is set to release its earnings on Thursday, and all eyes will be on whether the trend continues across the industry.
In summary, Uber’s performance delivers an encouraging refresh with positive cash flow, robust ride-share growth, and a growing workforce—an all‑round triumph that sets the stage for the next quarters.
