Uber and Lyft share best week ever

Air passengers wait in the parking lot near an Uber sign at Los Angeles International Airport (LAX) on August 20, 2020 in Los Angeles, California.

Mario Tama | Getty Images

Gig economy stocks Uber, Elevator, DoorDash as well as Airbnb rose this week after companies released quarterly reports that showed strong demand.

Lyft ended the week up 46%, while Uber jumped 37% in what was the best week for both stocks. DoorDash closed down 15% and Airbnb rose for the third week in a row, climbing 5.5%.

Investors are encouraged that the consumer-market concert companies are still weathering inflationary pressures that have rocked other sectors such as retail. It could also be a sign that grocery delivery platform Instacart could be a stronger case for an IPO. Instacart confidentially filed for an IPO in May, though it had to lower its private market valuation.

Uber CEO Dara Khosrowshahi said he noticed a change in consumer spending from retail to services. And inflation may even have helped. Khosrowshahi said Uber has noticed an increase in the number of drivers on the platform as consumers look for other ways to increase their income.

Airbnb, meanwhile, posted a record number of bookings. DoorDash stated that it has a record number of orders. Lyft, which still posted a net loss, posted its highest adjusted earnings ever.

Here are some of the highlights:

  • Uber reporting income or $8.07 billion, well above analysts’ estimates of $7.39 billion. Khosrowshahi said this driver engagement reached another post-pandemic high during the quarter.
  • Lyft reported a 16% increase in active riders to 19.9 million, the highest since the start of the pandemic.
  • Airbnb shares rise for the third week in a row. Company reported higher-than-expected earnings on Tuesday and earnings in line with expectations for the second quarter. Airbnb said the total number of nights booked for cross-border travel has surpassed pre-pandemic levels and doubled from the same period last year.