Please ensure Javascript is enabled for purposes of website accessibility

Record March Bookings Keep Uber on Track for Year-End Profitability

By Rich Duprey - Updated Apr 12, 2021 at 11:18AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The ridesharing giant is experiencing so much demand, it doesn't have enough drivers to meet it.

Announcing that gross bookings in March hit their highest monthly level in its 12-year history, Uber Technologies (UBER -4.53%) reported today that it remains on track to achieve quarterly adjusted EBITDA profitability in 2021.

Total company gross bookings achieved an all-time record last month, while its mobility bookings, which are its rideshare services, had their best month since March 2020. In fact, demand is growing so fast in the U.S. thanks to the availability of COVID-19 vaccines, it is outstripping the supply of available drivers.

Masked driver behind wheel

Image source: Uber Technologies.

Gross rideshare bookings reached $30 billion on an annualized run rate with average daily bookings rising 9% year over year. Even in Uber's delivery segment, demand is running well ahead of courier availability, with gross bookings crossing the annualized $52 billion run rate threshold.

Last week Uber announced it was increasing its incentives to lure in more drivers.

In a company blog post, the company's vice president for U.S. and Canada mobility, Dennis Cinelli, wrote that Uber was "launching a $250 million driver stimulus to boost already high earnings for drivers."

During much of the pandemic, with lockdown orders the rule of the day, many drivers had quit because they couldn't get enough trips to earn a living.

The Financial Times reports Apptopia data shows daily Uber driver log-ins were down 40% in the first three months of 2021 compared to the same period last year.

Rival Lyft (LYFT -5.57%) is also reportedly paying drivers to come back by offering them an $800 signing bonus.

Uber also announced that because it lost a U.K. court decision last month that requires it to consider its independent drivers to be employees, first-quarter results are going to take a hit. But the charges won't be included in its adjusted EBITDA results.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Uber Technologies, Inc. Stock Quote
Uber Technologies, Inc.
$21.50 (-4.53%) $-1.02
Lyft, Inc. Stock Quote
Lyft, Inc.
$13.22 (-5.57%) $0.78

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.