Daily Brief: Uber Turned To Perks Last Quarter To Bring On Board The Drivers It Needed

Daily Brief: Uber Turned To Perks Last Quarter To Bring On Board The Drivers It Needed

almost 2 years ago3 mins

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Uber posted strong quarterly results on Wednesday, after the ride-hailing app did whatever it took to get this show on the road.

What does this mean?

Uber’s a weird beast: the company is made up of a “delivery” segment – think Uber Eats – that benefited from lockdowns, and a “mobility” segment – its ride-hailing app – that didn’t. But both emerged from the pandemic stronger than ever, with the value of bookings from its mobility segment up 58% last quarter on the same time last year, and those from its delivery segment up 12%. The company even said it saw more worldwide ride-hailing bookings last month than it did in April 2019, which might be why it reckons it’s on track to return to pre-pandemic levels later this year.

Uber bookings
Source: Uber

Why should I care?

The bigger picture: Uber sweetens the deal.

Uber and rival Lyft have been struggling to hire enough drivers to keep up with this rebounding demand, which has left them trying to win new starters over with higher wages and trip-based bonuses. The two are taking very different approaches from here on out, mind you. Lyft said earlier this week that it’s planning to keep forking out on incentives – an admission that didn’t exactly play well with the company’s investors. Uber, for its part, is opting for a cheaper tactic: it’s planning to improve the drivers’ in-app experience instead. Tough choice.

Ride share prices
Source: Bloomberg

Zooming out: Here comes another rate hike.

Uber’s hiring issues aren’t a surprise: data out this week showed there were 5.6 million more US job openings than there were jobseekers in March. That’ll only force companies to keep offering higher wages to stand out, with the extra disposable income bound to drive inflation even higher. So it stands to reason that the Federal Reserve is stepping in: the central bank increased interest rates by 0.5% on Wednesday – the biggest hike since 2000 – and said it’ll start reducing some of its $9 trillion worth of bonds next month.

Job openings
Source: The Wall Street Journal, Labor Department

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AMD Reported Better-Than-Expected Quarterly Results

AMD image

AMD announced a strong quarterly update earlier this week, with the chipmaker posting a clean sweep of better-than-expected results.

What does this mean?

AMD shot the lights out last quarter, with each of its segments growing by double-digit percentages compared to the same time the year before. High demand for PC gaming and consoles like the PlayStation 5 and Xbox One gave its gaming chip sales a lift, while AMD’s seriously profitable data center business was firing on all cylinders. In fact, nearly half of all new data center chips installed in March were made by AMD, according to analysts at Jeffries. All in all, then, AMD’s revenue was 71% higher last quarter than the same time last year, and its revenue outlook for this quarter topped expectations too. Investors had heard enough: they sent the chipmaker’s shares up 8%.

AMD stock
Source: Google Finance

Why should I care?

The bigger picture: AMD’s advantage.

If it’s able to hit its forecast, AMD will end 2022 with almost quadruple the revenue it made in 2019. A big part of that is down to its relationship with contract chipmaking giant TSMC, whose cutting-edge technology and manufacturing techniques allow it to make far better-quality chips than its rivals. That might be why AMD continued to poach market share from other PC-makers, even as global computer shipments are estimated to have fallen 6.8% last quarter.

Global PC shipments

Zooming out: Intel’s luck is running out.

One competitor losing out to AMD is Intel, whose quarterly results didn’t exactly light the world on fire last week. The chipmaking giant only just managed to scrape past revenue expectations, and it gave a disappointing revenue and profit outlook for this quarter, suggesting demand for its lower-quality chips is falling across the board. That threw investors off, and they sent its stock down.

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