Uber revenue exceeds expectations despite core unit performance gaps

Uber's third-quarter revenue reached $14.77 billion, exceeding the $14.69 billion estimated by analysts. While the total revenue figure showed a 10% year-over-year increase, the performance of the company's two primary segments fell short of projections. Net income for the quarter was $512 million, reflecting a significant decline from the previous year, which was bolstered by a one-time tax benefit.

CEO Dara Khosrowshahi attributed the mobility unit's underperformance to high fuel prices and tighter driver supply in international markets. The mobility business generated $7.52 billion in revenue, missing the expected $7.71 billion. Similarly, the food delivery unit reported $5.49 billion, trailing the $5.51 billion consensus. The company noted that it is actively investing in driver supply to address these challenges.

Uber is shifting focus toward automation, aiming for a network of 2,000 driverless vehicles by the end of 2027. Growth in the company's freight division, which jumped 34% to $1.76 billion, helped offset the weaknesses in ride-hailing and delivery. For the fourth quarter, Uber forecasts total bookings of approximately $64.5 billion, aligning with analyst outlooks.