Uber’s First-Quarter Revenue Was Likely Boosted by a High Take Rate

The ride-sharing company’s take rate is the percentage of each rider’s fare that it earns as commission.

Uber Vehicle

Matthew Horwood / Stringer / Getty Images

Uber Technologies Inc. (UBER), one of the world’s biggest ride-sharing companies, will likely report a narrow net loss in the first quarter on solid revenue gains boosted by a robust take rate or the percentage of each rider’s fare it keeps.

Key Takeaways

  • Uber is forecast to report a net loss of $178.1 million, or 9 cents a share, compared to a much larger $5.93 billion loss in the same quarter last year.
  • Revenue growth slowed from the previous two years, when the loosening of pandemic restrictions caused travel demand to surge, but remained robust.
  • Total revenues likely rose 27% from a year earlier to $8.71 billion, boosted by a near-record 27.7% take rate.

Uber will likely report a net loss of $178.1 million, or nine cents a share, versus a much larger $5.93 billion loss in the same quarter last year, according to estimates compiled by Visible Alpha. Revenue is projected to have risen 27% from a year earlier to $8.71 billion, a slowdown from recent quarters. The company’s take rate likely held steady at 27.7%, helping to boost revenues. Uber reports its first-quarter earnings on Tuesday, May 2 before markets open.

Revenue gains from Uber’s core ride-hailing business likely slowed from the blistering pace of the previous two years, when the lifting of pandemic restrictions and stay-at-home orders caused travel demand to surge. Ride revenue growth peaked at a 195% annual pace in the first quarter of 2022, after contracting 67% year-over-year in the second quarter of 2020, at the height of pandemic lockdowns.

Uber Key Metrics
  Q1 FY 2023 (Projection)  Q1 FY 2022  Q1 FY 2021
Revenue ($M)  8,710  6,854  2,903
Earnings per Share ($)  (0.09)  (3.03)  (0.06)
Take Rate (%)  27.68  25.91  14.86

Helping boost Uber’s ride-sharing revenue was a high take rate, or the percentage of the fare that the company earns as commission. Uber’s take rate was likely 27.7% in the first quarter, just below an all-time high of 28.7% two quarters ago. A high take rate indicates that the company earns a bigger share of each rider’s payment, boosting revenue and profit margins.

The total number of Uber trips in the first quarter likely exceeded 2.1 billion, little changed from the preceding quarter but 22.8% higher than a year ago, the highest annual increase in three quarters.

Revenue from Uber Eats, the company’s food delivery service, also moderated in the first quarter. It was likely up 20.8% year-over-year, versus growth of 44.3% in the same quarter last year. Unlike ride-sharing, revenue from Uber Eats skyrocketed during the pandemic as online food orders surged amid lockdowns. Revenue growth in the segment peaked at 224% year-over-year in the fourth quarter of 2020.

Uber shares are up 20% year-to-date, roughly matching the performance of the S&P 500 information technology sector over the same period.

Uber (UBER) vs. S&P 500 Technology Sector YTD


Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. Uber Investor. "Uber Announces Results for First Quarter 2022."

  2. Uber Investor. "Uber Announces Results for Third Quarter 2022."

  3. Uber Investor. "Uber Announces Results for Fourth Quarter and Full Year 2020."

Take the Next Step to Invest
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.