Uber would like to think it is back in the driver’s seat. After all, on Wednesday the $53bn online taxi and food delivery company delivered sharply higher first-quarter revenues. Demand for rides rebounded and food deliveries held up despite restaurant reopenings.
Critically, the long-unprofitable Uber posted a positive adjusted ebitda, a modified profit measure that excludes stock-based remuneration and other expenses, of $168mn. That topped consensus expectations of $129mn.
But plenty of potholes mark Uber’s road to recovery. A driver shortage, rising gasoline prices and stiff competition all threaten consistent profitability. The 8 per cent slide in Uber’s share price on Wednesday underscores the market’s scepticism. Uber’s 13 per cent stake in Chinese ride-sharing service Didi does not help. Paper losses on Didi and other investments contributed to a $5.9bn net loss.