Uber profit forecast misses analyst estimates due to rising costs
Uber expects lower fourth-quarter profits as elevated fuel costs, driver shortages, and regional instability weigh on performance.
Uber has forecast a fourth-quarter profit below Wall Street expectations, citing significant headwinds including rising fuel costs, a persistent driver shortage, and the impact of the conflict in the Middle East. These factors have dampened ride-hailing demand in major markets, specifically India, Brazil, and Canada.
The company reported third-quarter revenue of $14.77 billion, which surpassed analyst projections but marked the slowest growth rate since the first quarter of 2021. To address the supply side of its marketplace, Uber is currently increasing expenditure to recruit and retain drivers whose own earnings have been squeezed by fuel inflation.
In parallel to its core ride-hailing business, Uber is diversifying its portfolio through the acquisition of catering marketplace ezCater. The company is also scaling its autonomous vehicle operations, with plans to have approximately 700 fully driverless vehicles operating on its platform by the end of the year.