Uber Tops Revenue Estimates but Ride-Hailing and Delivery Units Miss Forecasts

Uber reported third-quarter revenue that edged past Wall Street expectations, though its two flagship businesses, ride-hailing and food delivery, both fell short of analyst forecasts.

The company posted earnings of 25 cents per share, well below the 96 cents analysts surveyed by LSEG had anticipated. Revenue came in at $14.77 billion, slightly above the $14.69 billion consensus estimate.

Revenue rose 10 percent from $13.47 billion in the same period a year earlier. Net income totaled $512 million, a 92 percent drop from the year-ago quarter, when results were lifted by a $4.9 billion benefit tied to a tax valuation release.

Uber's mobility segment, its core ride-hailing operation, saw revenue decline 2 percent to $7.52 billion, missing the $7.71 billion average estimate compiled by StreetAccount.

The delivery unit grew revenue 23 percent to $5.49 billion, but that figure also trailed the $5.51 billion analysts had projected. Total bookings reached $59.82 billion, essentially matching the average estimate of $59.83 billion.

The overall revenue beat was driven by Uber's freight division, where sales surged 34 percent to $1.76 billion, comfortably ahead of the $1.49 billion StreetAccount consensus.

Chief executive Dara Khosrowshahi said in prepared remarks that the mobility segment performed slightly below expectations in overseas markets. "Elevated fuel prices and tighter driver availability weighed on supply growth in several international markets," he said, noting that Uber is making "targeted investments to strengthen driver supply."

Looking ahead, Uber said it plans to have more than 2,000 automated vehicles on its platform by the end of 2027, split evenly between the United States and international markets. The company expects roughly 700 such vehicles to be available by the end of this year, with Amazon's Zoox and Motional robotaxis joining the platform in Las Vegas this quarter.

Uber is also expanding its delivery arm through the acquisitions of Delivery Hero in Germany and ezCater in the United States. Khosrowshahi said a recently expanded partnership with Costco in the U.S. is "tracking ahead of expectations," adding that the retailer is now among the platform's top merchants by gross bookings.

For the fourth quarter, Uber projected total bookings of $64.5 billion at the midpoint of its forecast range, roughly in line with the StreetAccount average estimate of $64.26 billion.