Uber Outperforms Earnings Expectations, Leaving Lyft Behind in Quarterly Report
In a significant divergence within the ride-hailing sector, Uber Technologies Inc. has reported robust earnings that surpass analyst projections, while its competitor, Lyft Inc., fell short of expectations. For the second quarter ending June 30, Uber announced adjusted earnings of 63 cents per share, a notable increase from 47 cents per share in the same quarter of 2024. The company’s revenue surged to $12.651 billion, reflecting an 18% year-over-year growth, and exceeding analyst forecasts of 62 cents per share and $12.47 billion in revenue.
Driving Uber’s success is a marked increase in ride usage, with trips climbing 18% year-over-year to reach 3.3 billion. Gross bookings grew by 17% to $46.8 billion, while income from operations soared by 82% to $1.5 billion. A standout initiative this quarter was Uber’s collaboration with Waymo to deploy robotaxis in Atlanta—a service that commenced with a small fleet and aims to scale to hundreds of autonomous vehicles. Plans are also underway to introduce similar services in London by 2026.
CEO Dara Khosrowshahi emphasized the effectiveness of Uber’s platform strategy, stating, “Our platform strategy is working, with record audience, frequency and profitability across Mobility and Delivery.” As part of its future growth strategy, Uber anticipates gross bookings between $48.25 billion and $49.75 billion for the upcoming fiscal third quarter. Additionally, the company announced a $20 billion share repurchase initiative to reinforce its commitment to shareholder value.
In contrast, Lyft’s earnings report reveals a more challenging landscape. The company reported adjusted earnings per share of 10 cents—up from one cent in the previous year—alongside a revenue increase to $1.59 billion, an 11% rise year-over-year. However, these figures fell short of analysts’ expectations of 26 cents per share and $1.61 billion in revenue. Despite missing key performance metrics, Lyft did report growth in ride volume, reaching 234.8 million rides, and active riders increasing to 26.1 million, both achieving record highs.
Lyft achieved a net income of $40.3 million, a significant rise from $5 million in the previous year, and reported net cash from operating activities at $343.7 million, an increase from $276.2 million last year. CFO Erin Brewer characterized the quarter as an “all-time record” for rides, gross bookings, and cash flow generation, underscoring the company’s focus on operational excellence.
Looking forward, Lyft projects gross bookings between $4.65 billion and $4.8 billion for its upcoming fiscal third quarter.
This latest earnings cycle highlights a crucial moment in the competitive ride-hailing landscape, offering insights on market dynamics and strategic growth trajectories for both Uber and Lyft.
