Uber raises Q1 guidance as ridership recovers strongly

An Uber sign on a car at Oakland International Airport in Oakland, California, USA on Tuesday, February 8, 2022

David Paul Morris | Bloomberg | Getty Images

On Monday, Uber improved its financial guidance for the first quarter of 2022, citing a faster-than-expected recovery from the coronavirus-fuelled headwind.

The company’s shares rose more than 6%. Shares of rival Lyft rose more than 7%.

The taxi giant said in a filing with the SEC that it now expects adjusted EBITDA of between $130 million and $150 million. He expected between $100 million and $130 million. The company also believes it will report a “consistent improvement” in adjusted EBITDA in the mobility and delivery segments quarterly.

The company said demand for mobility improved “significantly” in February, with trips up to 90% from February 2019 figures. According to the statement, gross orders recovered by 95%.

“Our mobile business is recovering from Omicron much faster than we expected,” CEO Dara Khosrowshahi said in a statement. “Whether it’s travel, commuting or night outs, we’re seeing healthy and growing demand across all use cases, highlighting just how much consumers want to get moving again.”

He added that the company is gearing up for its strongest tourist season so far. Uber reported that gross bookings at airports were up more than 50% by the end of February from the previous month.

Uber’s bullish outlook comes as health officials around the world continue to ease coronavirus restrictions that have prevented many from traveling or going out.

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