Uber revenue up 29% as business improves in the US

Why it matters: Uber provides more evidence of the tech industry’s resilience.

Uber’s strong financial results come after encouraging performance from tech companies like Microsoft, the parent company of Google and Meta.

Uber has continued to recover from a slide during the pandemic, when it laid off thousands of employees. The company has since avoided the mass layoffs that have occurred at other tech companies, though it said on Tuesday its overall headcount fell after cuts at Drizly, an Uber-owned liquor delivery platform, and in its ride-hailing business.

Uber said its businesses in the United States and Canada, which have been slow to recover from the pandemic, are now growing faster, with rides in those regions up 40 percent from last year. The company said lower prices helped this growth. Uber has invested heavily in financial incentives to get drivers back on its platform. The company said drivers’ earnings are now increasing.

Background: Uber has focused on driver incentives.

Lyft, Uber’s main competitor, has not invested heavily in bringing drivers back to its platform after the pandemic shutdowns. With fewer drivers on the road, their prices have gone up.

Uber also has more products than Lyft, including partnerships with its ride-hailing and ride-hailing business. The company said bookings from products beyond its flagship UberX business grew more than 100 percent from a year earlier.

The company said it is confident in its competition with Lyft.

“They’re looking at competitive pricing with us, and we believe this creates a competitive environment where we compete for the brand,” Mr. Khosrowshahi said on a call with investors.

Uber’s delivery business grew much more slowly than its ride-hailing service but managed to deliver 8 percent growth in bookings compared to last year. Its freight business shrank 23 percent, which the company attributed to a challenging economy.

Overall, Uber lost $157 million, buoyed by gains in its investments in other companies.

What’s next: Lyft reports quarterly results.

Lyft, which has undergone layoffs and leadership changes, will report its financial results on Thursday. The company laid off 26 percent of the staff and appointed a new CEO.