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Uber Shares Rise as CEO Cites Gross-Bookings Record

'Our overall mobility business continues to get closer to prepandemic levels,' Uber CEO Dara Khosrowshahi says.
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Uber Technologies  (UBER) - Get Uber Technologies, Inc. Report shares rose on Tuesday after the ride-hailing company’s chief executive, Dara Khosrowshahi, said that last week was the best ever for its overall gross bookings.

That includes bookings for both its ride-sharing and delivery units, he said in an online interview hosted by UBS, CNBC reports

“Our overall mobility business continues to get closer to prepandemic levels,” Khosrowshahi said. “We’re starting to inch up to the 90% mark; we’re not quite there. Last week was our best week, post-pandemic.”

Uber recently traded at $37.42, up 5%. It has slid 25% in the past six months.

Morningstar analyst Ali Mogharabi puts fair value at $69 for the San Francisco.

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“We believe Uber has 30% global market share and will be the leader in our estimated $452 billion total addressable ride-sharing market (excluding China) by 2024,” he wrote in a commentary this month.

“Delivery, the firm’s food-delivery service, will continue to be one of the main revenue growth drivers. Both the mobility and delivery segments will benefit from cross-selling opportunities on the demand and supply sides of the platforms.

“Further, utilization of Uber’s overall on-demand platform for delivery services in other verticals can also help the firm progress toward profitability.”

To be sure, “the firm faces stiff competition from players such as Lyft  (LYFT) - Get Lyft, Inc. Class A Report (mainly in the U.S.) and Didi,  (DIDI) - Get DiDi Global Inc. Report a business in which Uber has an 11% holding,” Mogharabi said.

“While Uber no longer operates in China, it does compete with Didi in other regions around the world. Globally, the market remains fragmented, and Uber competes with many local ride-sharing platforms and taxis.”