Uber Smiles at Demand Recovery "Reviving After Omicron Spread Impact"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Uber announced that demand recovery is expected in the first quarter of this year as the impact of the Omicron variant spread gradually diminishes.

According to Bloomberg and other sources on the 9th (local time), Uber stated in its earnings report that it recorded revenue of $5.78 billion (approximately 7 trillion KRW) in the fourth quarter of last year, exceeding market expectations. Uber's gross bookings reached $25.9 billion in the fourth quarter of last year, a 51% increase compared to the same period the previous year, and the number of monthly active platform users hit a record high of 118 million. The Wall Street Journal (WSJ) analyzed that "the increase in revenue was due to the recovery in demand for mobility-related businesses and the high demand for food delivery services as restaurants resumed operations."

By business segment, gross bookings in the mobility sector increased by 67% year-over-year to $11.3 billion, while the delivery segment grew by 34% compared to the fourth quarter of 2020, reaching $13.4 billion. Uber also announced that the number of self-employed workers included in the delivery segment increased to over 825,000. Revenue related to freight transportation was recorded at $1.08 billion, a 245% increase compared to the same period last year.

Uber forecasts that the gross bookings for the first quarter of this year will be in the range of $25 billion to $26 billion, a significant increase compared to $19.5 billion in the first quarter of last year.

Dara Khosrowshahi, Uber's Chief Executive Officer (CEO), said, "The Omicron variant began to affect our business at the end of December last year, but demand in the mobility sector has already started to recover," adding that Uber's most recent weekly gross bookings increased by 25% compared to the previous month. He also noted that despite the COVID-19 pandemic, driver supply continues, which will reduce wait times for users.

This content was produced with the assistance of AI translation services.