Uber Technologies Inc. (NYSE: UBER) said its mobility business posted its best performance in a year last month, despite the ongoing Coronavirus-related restrictions. Overall gross bookings, the company said on Monday, jumped to a record monthly high in March.
Uber’s report might hint at the start of recovery after a massive hit to ride-hailing business due to the health emergency last year. The COVID-19 crisis has so far infected more than 130 million people worldwide and caused over 2.9 million deaths.
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Uber shares jumped roughly 3% in premarket trading on Monday. Including the price action, the stock is now exchanging hands at £43.49 per share. In comparison, the U.S. firm had started the year 2021 at a lower £37.22 per share.
Uber’s delivery business jumped 150% in March
Uber valued annualised gross bookings from its mobility business at over £21.83 billion in March – the highest total it recorded in a month since March 2020. On a month over month basis, its mobility business saw a 9% growth in average daily gross bookings last month.
In separate news from the United States, Canaccord Genuity upgraded Tesla’s stock from ‘hold’ to ‘buy’ on Monday.
Uber’s delivery business, on the other hand, jumped 150% on a year over year basis with gross bookings of more than £37.83 billion. In its filing to the U.S. Securities and Exchange Commission, the San Francisco-based company said on Monday:
“As vaccination rates increase in the United States, we are observing that consumer demand for Mobility is recovering faster than driver availability, and consumer demand for Delivery continues to exceed courier availability.”
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Uber announced a one-time stimulus last week
The ride-hailing company is now bound to treat its drivers in the United Kingdom as workers – a change that it highlighted on Monday will significantly weigh on its revenue in the fiscal first quarter. Uber’s adjusted EBITDA (earnings before interests, taxes, depreciation, and amortisation), however, will exclude this effect.
The New York Stock Exchange-listed company is scheduled to publish its quarterly earnings report on 5th May. The news comes a week after Uber announced a one-time stimulus of £182 million to bring back drivers.
Uber performed largely upbeat in the stock market last year with an annual gain of close to 60%. At the time of writing, the American technology company has a market cap of £80.50 billion.