(Reuters) -Uber Technologies on Tuesday forecast fourth-quarter gross bookings above expectations as its membership program drives up demand for both rides and deliveries heading into the holiday season.
The ride-hailing leader also beat Wall Street estimates for revenue in the third quarter as students returned to school and stricter return-to-office mandates boosted commutes within cities.
CEO Dara Khosrowshahi said the Uber One program was encouraging customers to book more food and grocery deliveries, underscoring increased potential for the services the company offers outside ride-hailing.
The delivery segment posted a 29% sales rise in the July-September quarter, outpacing the 20% increase in mobility revenue and flat growth in the freight division.
Consumers who use more than one of Uber’s services have 35% higher retention and spend three times more than others, Khosrowshahi said. Only about 20% of active users in markets with rides and delivery use them together, though top-performing countries already surpass that level.
Uber forecast gross bookings – or the total dollar value of rides, deliveries and other services – of between $52.25 billion and $53.75 billion for the fourth quarter. Analysts expect $52 billion, according to data compiled by LSEG.
It expects current-quarter adjusted EBITDA – a profitability metric keenly watched by investors – of between $2.41 billion and $2.51 billion, marginally below expectations of $2.48 billion.
Uber will replace adjusted EBITDA with adjusted profit forecasts starting from its guidance for the first quarter of next year, adopting a practice typical of more mature firms.
Gross bookings in the third quarter ended September 30 were $49.74 billion, compared with estimates of $48.73 billion. Revenue rose 20% to $13.47 billion, beating estimates of $13.28 billion.
Uber’s stock has gained about 65% this year on the back of strong quarterly results and its growing dominance in the ride-hailing sector.
(Reporting by Akash Sriram in Bengaluru; Editing by Devika Syamnath)
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