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Uber shared a profit forecast that came in lower than analysts expected, even as its total bookings grew. The company is spending more to attract and keep drivers on the road, which eats into its earnings. At the same time, ongoing conflict in the Middle East has disrupted its business in that region.
While the company is still growing its core business, these two pressures show that Uber remains sensitive to things it cannot control, like global politics and the local labor market. For long-term owners, the focus is on whether Uber can keep its profit margins steady while paying enough to keep its fleet of drivers active.
Source: Reuters
During its busiest week in October, Uber saw only four rides ordered through personal AI agents. These are software tools that can perform tasks like booking travel or ordering food on a user's behalf. While many tech companies are betting on these agents as the next big shift in how we use the internet, the data shows that for now, people still prefer to open the app and book for themselves.
Source: TechCrunch
Waymo, the self-driving car company owned by Alphabet, announced it will pull its fleet from the Uber app in Austin and Atlanta in early 2028. The two companies have been partners in those cities, letting Uber users book a driverless Waymo car directly through the app.
This move highlights a long-term risk for Uber: as robotaxi technology matures, the companies that own the cars may decide they no longer need Uber to find passengers. While Uber still has a much larger user base, Waymo's decision to go it alone in these markets suggests it is confident it can attract riders to its own app without paying Uber a fee.
Source: TechCrunch
Amazon is adding Uber Eats perks to its Prime membership, giving users free delivery on restaurant orders of at least $25. The service will be available directly through Amazon's website and shopping app.
This is a win for Uber because it plugs its delivery network into Amazon's massive base of over 180 million U.S. Prime members. By making Uber Eats the default delivery option for these shoppers, Uber can bring in more orders without having to pay as much to find new customers.
Source: Business Wire
After Uber reported its November results, we updated our fair value and cut our quality score to 4.0. We have added the risk of a federal investigation into how the company uses data to set personalized prices for customers. We also added competition from Walmart in restaurant delivery and the integration of massive recent acquisitions to what we track. We lowered our expectations for how many people use the app each month after growth slowed to 14% over the past quarter.
Management has cleared its profit targets for seven of the last eight quarters. These consistent, narrow beats suggest a team that has mastered its own math and sets a bar it knows it can clear.
| Expectation | |
|---|---|
| EPS | $0.97 |
| Revenue | $15.63B |