Uber Technologies (UBER) is on a roll.
The stock has had a steady climb in 2023, rising to its highest level in more than 18 months amid rising revenue and guidance that it will post operating income profitability this year.
The company saw first-quarter revenue climb 30% year over year to $8.82 billion, and on Wednesday it announced that it is tapping into a new revenue stream that it had previously banned from the platform.
Uber will now offer a teen account feature, allowing teens between the ages of 13 and 17 to book rides on the platform and ride in the vehicle alone.
Previously, teenagers were required to be accompanied by an adult in order to book a ride.
Parents will be able to use the live trip-tracking feature to monitor their children. Teen accounts will include a unique PIN number that the rider must give to their driver before the trip begins and in-app audio recording of the ride.
The features will make sure "parents can have peace of mind," CEO Dara Khosrowshahi said during the company's annual product event, according to CNN.
As part of the security measures, "only experienced and highly-rated drivers will be eligible to complete trips with teens," according to Khosrowshahi.
The company consulted with the nonprofit Safe Kids Worldwide while building the teen account platform.
Separately, Uber announced that its US customers can now dial a number to request a ride on demand or reserve a future trip, bypassing the need to access the app.
The toll-free number allows people who aren't as adept at using a smartphone the opportunity to use the service, further expanding Uber's potential revenue base.
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Uber Takes to the Skies
Earlier this month, Uber said that customers in the United Kingdom could book flights from the app on their phone.
The new feature will partner with travel-booking platform Hopper to allow users to shop for the best price on Uber.
Users will also be able to choose between return and one-way flights and choose their seat on the plane directly through the app.
"Our new functionality will make the booking and managing of air travel simple and stress-free, with the booking process taking as little as one minute," Uber General Manager Andrew Brem said in a statement.
Users in the UK can already use the app to book bus and train tickets through that country's National Rail network.
Uber's Shareholder commitment
The company had such a good first quarter that Uber says it will be looking into returning value to its shareholders through various means.
"Over the next few quarters, we will evaluate returning excess capital to shareholders as our cash flows ramp, and with any potential further monetization of our equity stakes over the long term," CFO Nelson Chai said in Uber's quarterly shareholder letter.
"We believe that our approach will position us to have the lowest cost of capital relative to our competitors, serving as a significant competitive advantage and allowing us to continue to grow our scale and platform advantages over the long run."
