uber: Uber Eats in focus as inflation-hit consumers rethink ordering in
The slowdown could dampen any boost from a rebound in Uber's mainstay ride-hailing business that has been benefiting from the reopening of offices and a surge in travel globally.
"Investors have written off food delivery as the next shoe to drop as consumers tighten up their wallets," Bernstein analyst Nikhil Devnani said, pointing to the dismal performance of Britain's Deliveroo.
The context
Deliveroo had cuts its annual revenue forecast last month amid a worsening cost of living crisis, prompting questions over the growth prospects of delivery firms.
While ride-sharing has staged a recovery this year, that could come under pressure from a possible driver shortage sparked by the surge in gasoline prices, MKM Partners analyst Rohit Kulkarni said.
Uber said last quarter it was not seeing the need to boost incentives to lure drivers, while rival Lyft was forced to invest more to ensure a steady supply of cab rides.
Lyft will report earnings on Thursday.
Fundamentals
* Analysts expect Uber to post second-quarter revenue of USD7.39 billion, up 88.2% from a year earlier - Refinitiv data
* Lyft's revenue is expected to rise 29.1% to USD987.9 million
* EBITDA, a keenly watched metric, is expected to come in at USD258 million for Uber and USD18.7 million for Lyft
WALL STREET SENTIMENT
* So far in 2022, Uber has declined 44% and Lyft has shed 68%, more than the 13.2% fall in the benchmark S&P 500 index.
UBER's QUARTER REFINITIV IBES ACTUAL BEAT, SURPRISE %
ENDED ESTIMATE MET,
MISSED
Mar. 31 2022 -0.24 -0.18 Beat 25
Dec. 31 2022 -0.35 -0.26 Beat 25.9
Sep. 30 2021 -0.30 -0.22 Beat 25.8
Jun. 30 2021 -0.51 -0.19 Beat 62.7
Mar. 31 2021 -0.54 0.26 Beat 147.8
Dec. 31 2020 -0.55 -0.54 Beat 2.7
Sep. 30 2020 -0.65 -0.62 Beat 4.5
Jun. 30 2020 -0.86 -0.80 Beat 7.4
LYFT's QUARTER REFINITIV ACTUAL BEAT, SURPRISE %
ENDED IBES MET,
ESTIMATE MISSED
Mar. 31 2022 -0.07 0.07 Beat 203.3
Dec. 31 2022 0.08 0.09 Beat 9
Sep. 30 2021 -0.03 0.05 Beat 272.1
Jun. 30 2021 -0.24 -0.05 Beat 79.2
Mar. 31 2021 -0.55 -0.35 Beat 36.2
Dec. 31 2020 -0.72 -0.58 Beat 18.9
Sep. 30 2020 -0.91 -0.89 Beat 2.7
Jun. 30 2020 -1.00 -0.86 Beat 14.4
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