Uber Technologies has announced a $20 billion stock buyback programme while forecasting stronger-than-expected gross bookings for the third quarter, citing momentum from its expanding loyalty programme and a surge in weekday commuting.
The company reported an 18.2% increase in gross bookings for the second quarter, driven by a 24.6% rise in delivery and 18.8% growth in mobility services.
Uber now expects third-quarter bookings between $48.25 billion and $49.75 billion, topping the $47.3 billion Wall Street estimate.
Uber’s $9.99 monthly subscription service, Uber One, played a significant role in driving this growth.
Member count surged 60% year-on-year in June, reaching over 36 million.
These subscribers now account for more than one-third of total bookings and generate more than three times the profit of single-service users.
The increase followed a targeted promotional event in May, where Uber offered discounts across rides, food, and grocery delivery.
The week-long campaign brought in 500,000 new Uber One users.
Revenue hits $12.65 billion as bookings and users surge
Uber posted second-quarter revenue of $12.65 billion, beating analyst expectations of $12.46 billion, according to LSEG.
This marked an 18% increase from $10.7 billion in the same quarter last year.
Net income rose to $1.36 billion, or 63 cents per share, up from $1.02 billion, or 47 cents per share, a year earlier.
Gross bookings for the quarter grew 17% to $46.8 billion. Adjusted EBITDA reached $2.12 billion.
The company’s mobility segment generated $23.76 billion in gross bookings, up 18% year-on-year, while delivery gross bookings rose 20% to $21.73 billion.
Uber’s monthly active platform consumers increased 15% to 180 million in Q2.
Users booked 3.3 billion trips during the quarter, up 18% from the same period last year.
The earnings release coincided with the announcement of Uber’s $20 billion stock repurchase authorisation, underscoring the company’s confidence in its long-term performance.
Uber One loyalty members drive recurring usage and revenue
The Uber One membership base has emerged as a major source of profitability.
According to Uber’s Wednesday filing, loyalty members tend to use both ride-hailing and delivery, contributing significantly more revenue per user.
This aligns with Uber’s strategy to encourage multi-service engagement and routine usage.
The company has also expanded its “Price Lock Pass” subscription, which allows fixed fare commuting for $2.99 per month.
Currently available in over 10 major cities in the US and Brazil, the pass has led to an average of six additional commuting trips per user each month.
This commuter demand helped push weekday usage, especially in the second quarter, and supports Uber’s strategy to boost habitual, high-frequency travel.
Buyback adds to earlier $7 billion authorisation
The newly unveiled $20 billion buyback programme builds on the $7 billion stock repurchase authorisation announced earlier in 2024.
Uber’s shares were previously under pressure as investors watched for signs of sustained profitability and market share gains amid saturation in the North American ride-hailing sector.
Rival Lyft, which reports earnings after market close, faces similar challenges as the market matures.
Uber’s strategy has been to drive recurring demand through bundled services and expand revenue from high-frequency users, a direction that now appears to be paying off.
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