Uber could be on the road to hitting a profitability marker for the first time in its 12-year history and that milestone is on track to happen faster than expected.
The ride-hailing and food delivery app updated its forecast on Tuesday, and predicts it could see an adjusted profit of up to $25 million in the current quarter.. That forecast jumps to $100 million for the fourth quarter.
A rise in gross bookings is fueling that optimism. The company said riders returned in greater numbers in July and it expects that pace to continue in the months ahead. That's a different story from last year when demand was low as fewer consumers ventured outdoors... and many who did, opted to buy a car for transportation.
Meanwhile, Uber's other business: food delivery has been strong during the health crisis and Uber expects that to continue.
Even with that, Uber still lags its smaller rival Lyft when it comes to the race to turn a profit. Lyft posted an adjusted profit in August....three months ahead of schedule as it got a boost from lower costs and a jump in rides as vaccinated workers around the country started to return to the office.
Investors, who have been clamoring for a profit ever since Uber’s IPO more than two years ago, were pleased with the new forecast.
Shares of Uber traded higher in early Tuesday trading. So did shares of Lyft.