Uber set to beat forecasts as people go out again

STORY: Uber is feeling optimistic.

The company on Tuesday (November 1) forecast its operating profit for the fourth quarter would exceed Wall Street estimates.

It comes as revenue in the company’s rideshare segment rose 73% in the third quarter.

The company says that’s thanks to cities reopening and travel booming.

Adding it expects these trends to continue into the next quarter.

Uber shares surged 10% on Tuesday, beating peers Lyft and DoorDash.

The ride hailing company had faced driver shortages following the health crisis.

But said active driver numbers are back to September 2019 levels.

That’s in part fuelled by decades-high inflation pushing many to look for sources of additional income.

But the company is aiming to scale back hiring and reduce expenses to lift profitability.

Uber’s food delivery business, however, grew less than the previous quarter.

Indicating that consumers are holding back on ordering in food as the cost of living rises.