Air travelers wait for a rideshare near an Uber sign at Los Angeles International Airport (LAX) on August 20, 2020 in Los Angeles, California.
Mario Tama | Getty Images
Shares of gig economy firms Uber, Lyft, DoorDash and Airbnb rose this week after the companies released earnings reports showing strong demand.
Lyft ended the week up 46% and Uber is up 37%, the best-ever week for both stocks. DoorDash closed down 15% and Airbnb rose 5.5% for the third straight week.
Investors are encouraged to see that in the consumer market, gig companies have so far withstood the inflationary pressures that have rattled other sectors such as retail. It could also be a hint that grocery delivery platform Instacart can make a stronger case for an IPO. Instacart confidentially filed for an IPO in May despite having to lower its private market valuation.
Uber CEO Dara Khosrowshahi said he’s noticed a shift in consumer spending from retail to services. And inflation might even have helped. Khosrowshahi said Uber has seen an increase in the number of drivers on the platform as consumers look for other ways to boost their income.
Airbnb, meanwhile, saw an all-time high in bookings. DoorDash said it had a record number of orders. Lyft, which was still at a net loss, posted its highest-ever adjusted profit.
Here are some of the highlights:
- Uber reported revenue of $8.07 billion, well above analyst estimates of $7.39 billion. Khosrowshahi said driver engagement hit another post-pandemic high in the quarter.
- Lyft reported a 16% increase in active drivers to 19.9 million, the highest since the pandemic began.
- DoorDash posted better than expected revenue. Despite reporting a larger loss per share than estimated, the company saw 23% growth in the total number of orders shipped.
- Airbnb shares are up for the third straight week. The company on Tuesday reported better-than-expected earnings and sales in line with expectations for the second quarter. According to Airbnb, gross nights booked for cross-border travel exceeded pre-pandemic levels and doubled compared to the same period last year.