Uber confident on profit as ride-sharing makes strong start to 2023

Uber Technologies Inc (UBER.N) forecast quarterly core earnings above estimates on Tuesday, after a surge in demand for travel and food delivery helped the U.S. ride-sharing giant report better-than-expected results for the January-March period.

Shares of the company rose 10%, while those of smaller peer Lyft Inc (LYFT.O) gained 4% in pre-market trading.

Uber is benefiting from its dominant position in key global markets as travel rebounds from a pandemic-induced lull.

A jump in the number of people looking to gain additional income is also helping platforms such as Uber squeeze out higher profit by offering lower incentives to gig workers, analysts have said.

“Our clear lead on driver preference has allowed us to better serve this growing demand: 5.7 million drivers and couriers earned $13.7 billion (including tips) on Uber during the quarter, both all-time highs,” said Chief Executive Dara Khosrowshahi.

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