Revenue up at Uber as company looks to bolster grocery delivery

Rideshare and last-mile delivery company Uber reported a year-over-year third quarter revenue increase of 11% to $9.3 billion and announced a number of new tech innovations for its grocery delivery service at its quarterly earnings call Tuesday. 

Beginning in 2024, Uber will begin accepting SNAP (Supplemental Nutrition Assistance Program) benefits as payment, as well as FSA (Flexible Spending Account), Managed Medicaid and Medicare Advantage benefits.  

The announcement on FSA benefits comes one day after rival Instacart announced that it will begin accepting FSA, HSA (Health Savings Account), Medicaid and Medicare Advantage benefits as payment beginning on Dec. 4. 

Uber has also launched an AI-powered assistant to help customers find grocery sales, develop meal plans and quickly order ingredients on a budget, the company said.   

Uber reported a whopping 25% year-over-year increase in overall trips to 2.4 billion—roughly 27 million a day—for the quarter. Delivery bookings grew 18% year over year to $16.1 billion. 

Net income reached $221 million for the quarter, up dramatically from the $1.2 billion in net losses reported for the same period last year. 

“Our relentless focus on improving the product experience for both consumers and drivers continued to power profitable growth, with trip growth accelerating to 25%,” said Uber CEO Dara Khosrowshahi in a statement. “Uber’s core business is stronger than ever as we enter the busiest period of the year.” 

Uber noted in the report that over the last year, it has grown its selection of grocers to include all 161 The Fresh Market stores, more than 260 Hy-Vee grocery and liquor store locations and more than 190 Save Mart Companies stores, which includes the banners Save Mart, Lucky and FoodMaxx.  

The company also developed a partnership with office supply store Staples to provide delivery from all of its locations nationwide.  

“Strong topline trends and record profitability demonstrate the durability of our growth and the significant earnings power underlying our platform,” said Uber CFO Nelson Chai in a statement. “We continue to make disciplined investments in growth opportunities to support long-term value creation for all stakeholders.”