Air travelers wait in the carpool lot near a sign for Uber at Los Angeles International Airport (LAX) on August 20, 2020 in Los Angeles, California.
mario tama | Getty Images
Shares of gig economy companies Uber, Lyft, DoorDash and Airbnb rose this week after the companies released quarterly reports showing strong demand.
Lyft ended the week up 46% and Uber jumped 37%, the best week ever for both stocks. DoorDash closed up 15% and Airbnb rose for a third consecutive week, climbing 5.5%.
Investors are encouraged to see that gig businesses in the consumer market are, so far, resilient to inflationary pressures that have rocked other sectors, such as retail. It may also indicate that grocery delivery platform Instacart may make a stronger case for an IPO. Instacart confidentially filed for an IPO in May, although it had to cut its private market valuation.
Uber CEO Dara Khosrowshahi said he noticed a shift in consumer spending from retail to services. And inflation may 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 increase their income.
Airbnb, meanwhile, saw an all-time high in bookings. DoorDash said it saw a record number of orders. Lyft, which still had a net loss, posted its highest ever adjusted profit figure.
Here are some important points:
- Uber posted revenue of $8.07 billion, well above analysts’ estimates of $7.39 billion. Khosrowshahi said driver engagement hit another post-pandemic high in the quarter.
- Lyft reported a 16% increase in active riders, to 19.9 million, the highest since the pandemic began.
- DoorDash reported better than expected revenue. Despite posting a bigger-than-expected loss per share, the company saw 23% growth in total orders shipped.
- Airbnb shares rose for the third week in a row. The company on Tuesday posted better-than-expected earnings and revenue in line with expectations for the second quarter. Airbnb said gross nights booked for cross-border travel exceeded pre-pandemic levels and doubled from the same time last year.