Uber Technologies Inc. on Wednesday announced a massive $20 billion stock buyback program and issued a bullish forecast for third-quarter gross bookings, buoyed by the growing popularity of its paid loyalty program, Uber One.

The ride-hailing and delivery giant said membership in its $9.99-per-month Uber One program surged 60% year-over-year in June to over 36 million users, with the group now accounting for more than one-third of total bookings. These subscribers—who typically use both ride-hailing and delivery services—generate over three times the profit compared to single-service users, the company noted.

To drive adoption, Uber hosted a week-long promotional event in May offering discounts across rides, food, and groceries. The campaign drew in 500,000 new members.

The company expects third-quarter gross bookings to range between $48.25 billion and $49.75 billion, exceeding Wall Street’s average estimate of $47.3 billion, according to LSEG data. This follows an 18.2% increase in gross bookings in Q2, led by a 24.6% jump in its delivery segment and 18.8% growth in mobility services.

Uber’s stock, which has risen 48% year-to-date and is among the top performers on the S&P 500, dipped slightly by about 1% in early trading.

The company’s adjusted core profit forecast for the current quarter stands between $2.19 billion and $2.29 billion, above the average analyst estimate of $2.22 billion. Second-quarter net income rose to 63 cents per share, up from 47 cents a year earlier.

Uber is also expanding its subscription offerings such as the $2.99 “Price Lock Pass,” now available in over 10 major cities in the U.S. and Brazil. The feature helped drive increased weekday commuting, with riders taking over six additional trips monthly on average.

While Uber does not own its own robotaxi technology, it is betting on strategic partnerships—over 20 in total, including deals with Lucid Motors and Nuro—to remain competitive in the self-driving race.

The newly announced $20 billion buyback follows a $7 billion repurchase authorization earlier in 2024.