Uber Beats Revenue Estimates but Warns of Driver Shortages

Uber Technologies Inc. reported third-quarter revenue of $14.77 billion, a 10% increase that exceeded analyst estimates. The revenue beat was driven by a 34% jump in freight division sales to $1.76 billion, which offset a 2% decline in mobility revenue to $7.52 billion. Net income fell 92% to $512 million, primarily because the previous year's results included a $4.9 billion tax valuation benefit.

Despite the revenue growth, the company forecast fourth-quarter adjusted profit between 95 and 99 cents per share, missing Wall Street estimates of $1.06. CEO Dara Khosrowshahi attributed the outlook to elevated fuel costs and driver shortages in international markets such as India and Brazil. He specifically noted that tighter immigration flows have left the Canadian market meaningfully undersupplied. Additionally, conflict in the Middle East created a 75 basis-point drag on mobility bookings growth.

To address these supply constraints, Uber is increasing spending on driver recruitment, retention, and reactivation. The company is also accelerating its autonomous vehicle strategy, aiming for 700 driverless cars by the end of 2026 and over 2,000 by 2027. Uber expanded its delivery footprint by acquiring ezCater in the United States and Delivery Hero in Germany, while reporting that its partnership with Costco is performing ahead of expectations. The company expects minimal further mergers and acquisitions through 2027 outside of autonomous vehicle investments.