Uber shares rose 5% Tuesday after the company’s CEO Dara Khosrowshahi announced that the company had its “best week ever” in terms of total gross bookings last week, despite growing concerns about the spread of the business Omicron variant of the coronavirus.
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Gross posting refers to the total combined revenue of Uber’s ride and delivery companies. Khosrowshahi emphasized that Uber’s delivery business has grown three and a half times since the company’s IPO in 2019. He is also promoting a strong recovery in the mobility segment in recent weeks.
“Our mobility business as a whole continues to approach pre-pandemic levels,” he told UBS analyst Lloyd Walmsley during a chat on fire on Tuesday. “We’re starting to move, to call it the 90% mark, we’re not quite there yet. Last week was our best week, you know, after the pandemic.”
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In the third quarter of 2021, Uber reported that gross bookings hit an all-time high of $ 23.1 billion, up 57% year over year. Mobility’s gross booking revenue was $ 9.9 billion for the quarter, up 67% year over year, while gross booking revenue from delivery was $ 12.8 billion, up 50% on an annualized basis. Trips increased 39% year over year to 1.64 billion during the quarter, or an average of nearly 18 million trips per day.
Uber expects fourth quarter gross booking revenue in the range of $ 25-26 billion and adjusted EBITDA between $ 25-75 million. Uber is well on its way to hitting the upper end of the adjusted EBITDA forecast, according to Khosrowshahi.
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Alongside the recovery in business, the executive announced that Uber is planning to sell its holdings in companies it believes have no strategic value. He stressed that many of the companies Uber has a stake in have recently gone public and are still subject to a “blackout” period.
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Didi was cited as a specific example because the company was a competitor and China was “a pretty difficult environment with very little transparency,” said Khosrowshahi. While Uber is in no rush to sell the shares, Khosorowshahi said the company will attempt to “intelligently” monetize the shares over a period of time.