Uber: Corp. Travel Return Spurs Uber for Business Optimism

Uber is “hugely optimism” in Uber for Business and “has continued to invest” in its sales force, Uber CEO Dara Khosrowshahi said during a Tuesday second-quarter earnings call.

Uber for Business had second-quarter gross bookings of $1.3 billion, up 41 percent year over year, according to the company. Managed Uber for Business, the actively managed portion through account managers and the sales team, represented 29 percent of the segment’s gross bookings compared with 25 percent in Q2 2021.

“We’re really selling to significant enterprise customers out there, both in the tech space and the non-tech space,” Khosrowshahi said. “A lot of these enterprises, some of them are going back to returning to office, some of them are not. But they are getting on growth. So the champion use-case that we’re seeing with U4B is essentially the business traveler getting out on the road again.”

The company also is “actively upselling” its Eats product into Uber for Business. “We’re seeing some customers, for example, buy our vouchers product,” Khosrowshahi said. The Uber for Business vouchers dashboard was redesigned during the quarter. “What it may look like is, you get a free lunch if you sit in this particular session to learn about … some new enterprise software capabilities. And each voucher becomes a way for customer acquisition.”

Q2 Metrics

Uber gross bookings reached an all-time high during the second quarter of $29.1 billion, growing 33 percent year over year or 36 percent on a constant-currency basis, the company announced.

The mobility (ride-hailing) and delivery segments were nearly evenly split. Mobility bookings at $13.36 billion were up 55 percent over Q2 2021 or 57 percent on a constant-currency basis. Airport gross bookings represented 15 percent of mobility gross bookings, the same share as in 2019 and up 139 percent year over year, “as consumer travel trends improved.”

Delivery bookings were $13.88 billion, a 7 percent increase year over year, or 12 percent on a constant-currency basis. Trips during the quarter grew 24 percent year over year to 1.87 billion, which also represented a 9 percent quarter-over-quarter increase.

Second-quarter revenue grew 105 percent to $8.1 billion, or 111 percent on a constant-currency basis. The company’s net loss was $2.6 billion. Mobility accounted for $3.55 billion of revenue, while delivery revenue was $2.69 billion. Geographically, the US and Canada reported $4.94 billion in revenue, up 149 percent year over year, followed by Europe, the Middle East and Africa at $1.85 billion, for 99 percent growth.

Third-quarter guidance includes gross bookings in the range of $29 billion to $30 billion.

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