Uber grows less strongly than expected, also blames this on fewer US trips

Uber has presented fundamentally positive business figures for the first quarter of this year, as the number of bookings as well as sales and profits have increased year-on-year. However, market observers had expected more. The transport provider blames this in part on fewer tourists, who have not been traveling to the USA as often since Donald Trump took office. In addition, employees are unhappy because Uber is increasing attendance requirements and raising the requirements for some employer benefits.

At the end of April, Uber announced internally that from June, employees would have to come into the office at least three days a week instead of just two. Some employees whose remote work had previously been approved will also have to clock in in future. At the same time, the requirements for paid leave have been tightened. Whereas five years of service were previously a prerequisite for a month's sabbatical, eight years of Uber work are now required. Numerous employees have criticized these measures, but Uber boss Dara Khosrowshahi opposes them.

Uber defends office duty

"If you're here for a sabbatical and this change causes you to change your mind, then so be it," Khosrowshahi said at an employee meeting on April 29, according to CNBC. "I'm sorry about that. We want you here because you have a positive impact on the company, on the learning here. We realize that some of these changes will be met with rejection. We had to take that risk." When asked, Uber also explained that "more frequent in-person presence is better for collaboration, innovation and company culture".

Khosrowshahi refutes accusations that these measures would force some employees to make voluntary redundancies. This has nothing to do with cost-cutting and there are no plans for redundancies. "Business is really going very well," he explained. "But listen, good is not good enough for us. We have to be great as a company."

The latest quarterly results confirm that Uber's business is going well. In the first three months of this year, Uber recorded 18 percent more bookings than in the same period last year. As a result, the company's revenue increased by 14 percent year-on-year to 11.5 billion US dollars. At the same time, operating profit rose from 1.1 billion dollars in the previous year to 1.2 billion dollars. On the bottom line, Uber earned 1.8 billion dollars, compared to a net loss of 654 million dollars at the beginning of 2024.

Share price falls only briefly, delivery service grows faster

Despite this, the share price briefly fell by almost 7 percent, as analysts had expected more bookings and higher sale, according to Bloomberg. However, the Uber share price recovered and closed only 2.5 percent lower than the previous day. Speaking to investors, Uber CFO Prashanth Mahendra-Rajah explained that "a decline in U.S. arrivals led in part to a decline in gross bookings per trip". Airbnb made similar remarks last week, reporting a decline in US travel by Canadian tourists in the first quarter. Instead, Canadians are now traveling to Mexico more often.

The lower-than-expected growth of Uber's mobility unit with its ride-hailing service overshadowed the good results of the delivery services. This is because the delivery unit with Uber Eats was able to increase its turnover by 18 percent to 3.8 billion dollars compared to the previous year. In contrast, revenue from rides alone grew by just 15 percent to 6.5 billion dollars.

(fds)