In a digital fireside chat hosted by UBS,
Uber Technologies
UBER
CEO Dara Khosrowshahi said that last week was the company’s “best week ever in terms of overall gross bookings,”
CNBC reported
. This bullish remark drove shares of the company up 4.3% at the close of business on Dec 14. Shares of its rival,
Lyft
LYFT
, also gained 1.5%.
Per the CNBC report, Khosrowshahi said, “Our overall mobility business continues to get closer to pre-pandemic levels.” He further added, “We’re starting to inch up to call it like the 90% mark, we’re not quite there. Last week was our best week, you know, post-pandemic.”
Uber’s mobility business suffered a major setback last year amid lockdowns in several countries. While ride volumes have improved significantly from the pandemic-induced lows with the rollout of vaccines and easing of restrictions, it continues to stay below the pre-pandemic levels.
The recovery in Uber’s Mobility segment can be gauged from the fact that gross bookings from the unit surged 67% year over year to $9,883 million in the third quarter of 2021. Mobility revenues rose 62% year over year to $2,205 million in the last reported quarter.
Similar to Uber, Lyft too struggled with significantly suppressed ride volumes during the height of the pandemic last year. The company’s ride volumes are gradually recovering but are still substantially below the pre-coronavirus levels. During the third-quarter conference call, LYFT stated that its ride volumes were still down 35% from the peak.
From the recovery perspective, Lyft’s total revenues surged approximately 73% year over year in the third quarter, benefiting from a 51.4% jump in Active Riders (riders who take at least one ride during a quarter on Lyft’s multimodal platform through its app) and 14.2% rise in Revenue per Active Rider.
Both Uber and Lyft carry a Zacks Rank #3 (Hold).
A Key Pick
A top-ranked stock in the
Internet – Services
industry is
Alphabet
GOOGL
, which sports a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history having trumped the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 41.5%. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Shares of Alphabet have rallied more than 63% in a year’s time.
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