Uber revenue jumps, but drivers ask for more money πŸ™„

Uber revenue jumps, but drivers ask for more money πŸ™„

Uber swings from one problem to another, swaying its pack of shareholders on a giant pendulum! πŸ€·β€β™€οΈ

For last 12 months, Uber’s problem was that riders had disappeared. Now as people start to go out, demand has returned, but so have driver issues, with higher wages eating into profits.

For the last 3 months, Uber grew its revenue by 75% YoY to $4 billion, but came up with $500M in losses, because it had to pay out higher driver wages to keep them driving.

Why are drivers being a problem?

  • Global car shortages β€” used car prices are through the roof in the US, and its hard for some people to get a car to drive
  • Govt. stimulus has basically taken off the incentive for people to work

Investor patience meanwhile is running thin.

Worth calling out β€” Uber’s Food Delivery empire is now MUCH bigger than its ride hailing business, bringing $13 billion in volumes β€” 65% of all Uber bookings.