"Uber, DoorDash, and Instacart largely beat quarterly expectations this week and saw their stocks lift. Despite rising gas prices and consumers trimming their budgets, many people are still spending on ride-hailing and food delivery, according to companies' latest earnings results. "We're definitely seeing that not all consumers are under pressure," said Brian Mulberry, chief market strategist at Zacks Investment Management. "Some are still very high earners and doing very well.""
"Paid memberships, which offer discounts or priority service for a monthly fee, are one example. DoorDash said signups for its DashPass membership, which costs $96 a year, grew during its first quarter. Uber, meanwhile, has about 50 million members in its $96-a-year Uber One program. Those users make up about half of the app's bookings, CEO Dara Khosrowshahi said on an earnings call Wednesday."
"Uber also unveiled a slew of offerings last week that cater to high-earning urban dwellers, Mulberry said. Those include the option to order a beverage or snack along with an Uber Black ride, or to have a courier buy something on your behalf at a local mom-and-pop store. In March, the company rolled out Uber Elite, an invite-only ride service that uses professional drivers and luxury vehicles to cater to business and other high-paying travelers."
"Black car rides and other "high-value modes" have been a focus for Lyft as well over the last few quarters, CEO David Risher said on the company's earnings call on Thursday. DoorDash also gained traction last year among baby boomers, data from polling firm Morning Consult found. This generation tends to have more wealth, including disposable income, than younger generations."
Uber, Instacart, and DoorDash reported quarterly results that largely beat expectations, with stocks rising despite higher gas prices and tighter consumer budgets. Many consumers still spend on ride-hailing and food delivery, including higher earners who are not under pressure. Paid memberships help retain these customers by offering discounts and priority service. DoorDash’s DashPass membership grew, and Uber’s Uber One program has tens of millions of members, accounting for about half of bookings. Uber also introduced premium options such as adding snacks or beverages to Uber Black rides, using couriers to buy items locally, and launching Uber Elite with professional drivers and luxury vehicles. Lyft emphasized high-value ride modes, and DoorDash gained traction with wealthier baby boomers.
Read at www.businessinsider.com
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