Uber keen to set itself apart from rival Lyft

Uber Technologies Inc on Wednesday said it had no need to boost incentives further to lure more drivers and forecast a strong second quarter, a day after rival Lyft said it needed to spend more for labour in the coming months.

The ride hail giant brought forward its results to Wednesday morning from the afternoon after Lyft Inc shares sank 26 per cent on Tuesday when its projected operating earnings fell short of expectations on higher driver pay, dragging down Uber's stock in its wake.

Uber shares dropped nine per cent in early trading, as analysts said investors were moving out of stocks of loss-making companies.

“Uber has a more diversified revenue base, given Uber Eats, but the issues that Lyft raises could yet impact Uber too, especially on the cost side,” AJ Bell Investment director Russ Mould said.

Lyft on Tuesday said it would have to invest more heavily to balance supply and demand in the coming quarters, eating into its already slim operating earnings.

Lyft shares were down 30 per cent in morning trading, wiping off more than US$3.2 billion in market value since Tuesday's close.

Uber on Wednesday also reported a dip in monthly active users in the first three months of the year from the previous quarter, a common trend in the industry during the colder winter months, but was keen to set itself apart from its smaller competitor.

Uber also said it expected to generate “meaningful positive cash flows” for the full year, which would mark the first time it achieved this goal in the company's 13-year history.