Uber Technologies Inc. (UBER) shares jumped after the company reported a 21% year-over-year surge in first-quarter gross bookings to $53.7 billion, signaling sustained demand for its ride-hailing and delivery services.
The company posted adjusted earnings of 72 cents a share, surpassing the 69 cents expected by analysts. Revenue grew 10% on a constant currency basis to $13.2 billion, slightly below the $13.3 billion consensus estimate.
The market's positive reaction was fueled by the growth in gross bookings, which tracks the total value of rides and deliveries. The figure surpassed the $52.8 billion analysts had forecast, with the ride-hailing segment growing 20% and the delivery business jumping 23%.
Shares of Uber rose 9.6% in premarket trading following the announcement. For the second quarter, Uber guided for gross bookings of $56.25 billion to $57.75 billion, with the midpoint above the Wall Street forecast of $56.17 billion.
Uber's expansion beyond its core business was also on display. The company recently partnered with European food retailer Ahold Delhaize to expand its grocery delivery footprint. It is also deepening its investment in autonomous technology, expanding a partnership with Lucid Group (LCID) to include at least 35,000 robotaxis and increasing its investment in the automaker to $500 million.
The push into new delivery formats includes partnerships with companies like Serve Robotics (SERV), which is deploying fleets of sidewalk delivery robots for Uber Eats. The market reaction lifted shares of rival Lyft (LYFT), which gained 4.2% in premarket trading.
The strong bookings growth and strategic expansion into autonomous technology and new delivery formats suggest Uber is successfully building a diversified platform beyond its core ride-hailing business. Investors will watch the Q2 results to see if the delivery segment's 23% growth can be sustained.
This article is for informational purposes only and does not constitute investment advice.