Uber's (UBER) Q4 revenues surged due to increased consumer activity, reporting earnings of 29 cents per share on revenue of $8.6 billion, 49% higher than the previous year. This surpassed analysts' expectations of a loss of 15 cents on revenue of $8.5 billion.
The news boosted Uber's stock 5.5% to close at $36.83. The mobility segment dominated with $4.1 billion in revenue, compared to the delivery segment's $2.9 billion. CEO Dara Khosrowshahi stated that Uber would not be affected by an economic downturn and that 70% of drivers cited inflation as a reason to work on the platform, with 2.1 billion trips taken, a 19% YoY increase.
Why it matters
Ridesharing companies are starting to recover from pandemic lows as offices reopen and following a resurgence in travel on the back of the reopening of closed borders and a strong U.S. dollar. Uber's revenue growth is set to outpace that of rival Lyft (LYFT) as the rideshare firm's presence in major markets around the world gives it the heft to deal with inflationary pressures.