Uber revenue beats, but mobility and delivery miss in Q3

By Sophie Lindqvist

Uber revenue beats, but mobility and delivery miss in Q3

$14.77 billion in third-quarter revenue exceeded the $14.69 billion analyst estimate, but 25 cents of earnings per share (profit measured per share) missed the 96-cent forecast. LSEG compiled both estimates. Shares nevertheless rose more than 7% on Wednesday.

Revenue increased 10% from $13.47 billion a year earlier. Net income (profit after expenses and taxes) fell 92% to $512 million; the prior-year result included a $4.9 billion benefit from a tax valuation release (a tax-accounting adjustment).

Where did the revenue beat come from?

Freight did the heavy lifting. Sales in Uber's freight division (commercial trucking business) jumped 34% to $1.76 billion, above StreetAccount's $1.49 billion consensus estimate (the average analyst forecast).

Both core units missed StreetAccount estimates, with bookings almost matching forecasts:

• Mobility revenue fell 2% to $7.52 billion, below the $7.71 billion estimate, according to StreetAccount.
• Delivery revenue rose 23% to $5.49 billion, just below the $5.51 billion estimate, according to StreetAccount.
• Total bookings (the value of services booked through Uber's platform) reached $59.82 billion, nearly matching the $59.83 billion StreetAccount estimate.

Freight supplied the beat; mobility and delivery supplied the caveat.

Why did overseas mobility disappoint?

Core mobility performed slightly below expectations overseas, CEO Dara Khosrowshahi said in prepared remarks before a scheduled call.

“Elevated fuel prices and tighter driver availability weighed on supply growth in several international markets,” Khosrowshahi said. Uber is “investing significantly” in bringing more drivers on board in India, Brazil and the U.S. to meet demand, he said.

He also said Uber was making targeted investments to strengthen driver supply (the number of drivers available to serve riders). In a CNBC interview, Khosrowshahi said Uber had more demand than supply, particularly in mobility.

The company did not intend to raise customer prices and was working to avoid longer wait times. Management's answer is therefore more supply rather than higher fares.

What does the driverless commitment mean?

Uber has committed about $10 billion in capital to bring more driverless vehicles (vehicles without human drivers) onto its platform through partnerships and investments. Rivian, Nuro, AVRide and other companies developing robotaxis (driverless taxis) and driverless trucks are among those involved.

By the end of 2027, Uber plans to place more than 2,000 automated vehicles on its platform, evenly split between the U.S. and international markets. It expects around 700 automated vehicles by the end of this year and plans to add Amazon's Zoox and Motional robotaxis in Las Vegas this quarter.

How is delivery expanding?

Uber is also growing the delivery business through acquisitions of Delivery Hero in Germany and ezCater in the U.S.

In Uber Eats, Khosrowshahi said Uber's recently expanded U.S. partnership with Costco was tracking ahead of expectations. The company said Costco now ranks among its top merchants by gross bookings (the value of customer orders booked).

For the fourth quarter, Uber forecasts overall bookings of $64.5 billion at the midpoint of its range, in line with StreetAccount's $64.26 billion average estimate.

Freight carried the revenue line; the operating test now rests on converting driver investment and the $10 billion automation commitment into capacity without raising fares.

In a CNBC segment on autonomous driving, Ross Gerber offered a blunt verdict:

“On a whole, I think Uber is cooked.”

That was commentary rather than company guidance. The numbers describe a near-term constraint: driver supply, not customer demand.