Uber turns cash flow positive for the first time

Uber Technologies Inc on Tuesday reported positive quarterly cash flow for the first time ever and forecast third-quarter operating profit above estimates, betting on steady demand for its ride-hailing and food-delivery services.

Uber shares, which have lost more than 40% this year, surged 15% to $28.41 in premarket trading and helped drive an 8% gain in rival Lyft Inc’s shares.

Uber generated free cash flow of $382 million in the second quarter, topping analysts’ expectations of $263.2 million, as trips exceeded pre-pandemic levels, boosted by the reopening of offices and a surge in travel demand.

The number of drivers and delivery agents on its platform rose 31% to an all-time high of almost 5 million, allaying concerns that soaring gas prices was deterring them from signing up with the company.