Making Financial Headlines · Page 4
Uber Beats Revenue Forecast, Finds Instant Rides Still Require Drivers
· New York time
Uber reported better-than-expected revenue, but its mobility business faced higher fuel costs overseas and tighter driver supply. Its chief executive told CNBC the company is investing significantly to add drivers. The result captures a basic tension in ride-hailing. An app can make requesting a trip nearly instantaneous, but a trip still requires an available driver. When supply is tight, the platform must find ways to attract enough people to meet demand rather than simply make the booking screen more attractive. Fuel costs also matter to the economics of driving, and Uber identified higher costs overseas as a pressure on its mobility unit. The company's revenue beat shows a stronger result than expected on that measure, while the investment in drivers points to work still needed on the supply side. For riders, the value of the service depends partly on whether a car is available when needed. For Uber, recruiting drivers is an expense as well as a way to support that service. Revenue and supply can tell different parts of the story in the same quarter. The app promises a convenient trip, not a magical vehicle that appears without anyone behind the wheel. Uber's latest investment recognizes that the most important feature on the screen remains a person who is willing to arrive at the curb.
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