Uber Q3 Revenue Beats Estimates While Core Mobility and Delivery Lag

Uber reported third-quarter revenue of $14.77 billion, exceeding the $14.69 billion average estimate compiled by LSEG. The top-line figure was driven primarily by a surge in its freight division, which outperformed expectations. However, the company missed forecasts in its two largest segments: ride-hailing and food delivery.

Ride-hailing revenue declined 2% year-over-year to $7.52 billion, falling short of the $7.71 billion average estimate from StreetAccount. Food delivery revenue grew 23% to $5.49 billion, but still trailed the $5.51 billion consensus. In contrast, freight sales jumped 34% to $1.76 billion, significantly beating the $1.49 billion target set by analysts.

The company posted net income of $512 million. This figure represents a 92% drop from the same period last year, which included a $4.9 billion benefit from a tax valuation release. Earnings per share came in at 25 cents, well below the expected 96 cents. Total bookings reached $59.82 billion, aligning closely with the $59.83 billion average analyst estimate.

CEO Dara Khosrowshahi attributed the mobility miss to international challenges. He stated that elevated fuel prices and tighter driver availability weighed on supply growth in several overseas markets. Uber is making targeted investments to strengthen driver supply in those regions.

The company is also expanding its automated vehicle fleet. Uber plans to have over 2,000 automated vehicles on its platform by the end of 2027, split evenly between the U.S. and international markets. By the end of this year, the company expects to have around 700 available, including Amazon’s Zoox and Motional robotaxis in Las Vegas.

Delivery operations are growing through acquisitions of Delivery Hero in Germany and ezCater in the U.S. Khosrowshahi noted that a recently expanded partnership with Costco in the U.S. is tracking ahead of expectations. The retailer is now one of Uber’s top merchants in terms of gross bookings.

For the fourth quarter, Uber forecasts overall bookings of $64.5 billion at the midpoint of its guidance. This figure is in line with the $64.26 billion average estimate from StreetAccount.