Uber released third quarter financial results that exceeded overall revenue projections but showed mixed performance across its operating segments. Total revenue climbed to $13.47 billion, representing 10% growth compared to the prior year period. However, the company’s net income declined sharply to $512 million, down 92% from the previous year, largely due to a $4.9 billion tax valuation benefit that had boosted prior-year results.
The company’s ride-hailing division, its flagship mobility business, generated $7.52 billion in revenue but fell short of analyst expectations of $7.71 billion, registering a 2% revenue decline. The food delivery segment performed better in absolute terms with 23% revenue growth to $5.49 billion, though this slightly trailed the $5.51 billion consensus estimate. Total platform bookings reached $59.82 billion, essentially matching analyst projections of $59.83 billion. Notably, Uber’s freight division outperformed, with revenue jumping 34% to $1.76 billion against an estimated $1.49 billion.
Uber CEO Dara Khosrowshahi attributed the mobility segment’s underperformance partly to international headwinds, citing elevated fuel prices and limited driver availability in several overseas markets. He emphasized that demand exceeds available supply, particularly in the ride-hailing sector, and stated the company is pursuing targeted investments to expand driver recruitment across India, Brazil, and the U.S. without raising customer prices or accepting longer wait times.
The company outlined significant capital allocation plans, committing approximately $10 billion toward autonomous vehicle deployment through partnerships with companies including Rivian, Nuro, AVRide, and others. Uber projects having around 700 automated vehicles operational on its platform by year-end, with plans to exceed 2,000 by the conclusion of 2027, split evenly between U.S. and international operations. The company also announced expansion in delivery services through acquisitions in Germany and the U.S., while noting strong performance from a recently expanded Costco partnership.
For the following quarter, Uber projects bookings of $64.5 billion at the midpoint of guidance, aligning with StreetAccount’s average estimate of $64.26 billion. Stock shares appreciated more than 7% on the day following the earnings announcement.
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