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Uber beats on revenue even as mobility and delivery units miss estimates
Uber reported stronger revenue than analysts expected, but its mobility and delivery businesses fell short of estimates. The results highlight a supply challenge in its core ride-hailing business: demand is outpacing driver availability in several markets, prompting investment to recruit drivers while limiting price rises and longer waits.
CEO Dara Khosrowshahi cited high fuel prices and tighter driver availability overseas. Uber plans to invest in driver supply in India, Brazil and the US, and says it has committed about $10 billion to autonomous-vehicle partnerships and investments. It expects around 700 automated vehicles on its platform by year-end and more than 2,000 by the end of 2027; its fourth-quarter bookings forecast has a midpoint of $64.5 billion.
In short
- Revenue beat expectations, while mobility and delivery missed estimates.
- Driver supply is struggling to keep pace with demand.
- Uber targets 2,000-plus automated vehicles by the end of 2027.
Explained simply
Uber is a technology company whose app connects passengers with drivers and customers with couriers. It earns money from these rides and deliveries, while drivers and couriers provide the transport. Its mobility and delivery units cover these two parts of the business.
The company needs enough drivers available to meet demand, particularly during busy periods and in different countries. Fuel costs and driver availability can affect how many drivers work and the prices or waiting times customers face. Uber is also investing in driver recruitment and autonomous-vehicle partnerships, which could shape how it provides rides in future.