Uber, UBER, has announced a $20 billion stock buyback program

Uber revealed a massive $20 billion stock buyback plan and projected third-quarter bookings ahead of Wall Street expectations on Wednesday, as the company continues to benefit from the expanding popularity of its paid membership service.

The ride-hailing and delivery giant said subscriptions to its $9.99 "Uber One" program surged by 60% year-over-year in June, reaching over 36 million members. These members now account for more than one-third of total bookings.

Uber One subscribers are particularly valuable to the company, as they engage with both ride and delivery services—generating over three times the profit of users who use only one of the platforms.

To boost membership, Uber ran a week-long promotional campaign in May, offering discounts across its core services including rides, food, and grocery delivery. The initiative was successful, adding 500,000 new members during that week alone, the company announced.

Shares of Uber—one of the top performers in the S&P 500 index (.SPX)—have climbed 48% this year, although the stock dipped about 1% in early trading Wednesday.

Both Uber and its competitor Lyft (LYFT.O), which is set to report earnings after market close, face ongoing investor scrutiny to sustain growth as the North American ride-hailing sector nears saturation.

For the current quarter, Uber anticipates gross bookings—the total value of transactions across its platform—to fall between $48.25 billion and $49.75 billion, topping analyst estimates of $47.3 billion, per LSEG data.

The upbeat forecast comes on the heels of a strong second quarter, during which Uber saw gross bookings rise 18.2%, driven by a 24.6% jump in its delivery segment and 18.8% growth in its mobility business.