Uber shares drop despite upbeat outlook
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The news: Uber missed quarterly revenue estimates as growth in its ride-hailing unit slowed to its weakest level since the pandemic, casting a shadow over the company’s positive outlook.
The numbers: The company said gross bookings, measuring customers’ total spend across all business units, for the three months ending June would come in between USD45.8 billion ($70.8 billion) and USD47.3 billion, compared with the USD45.8 billion estimated by analysts, according to Visible Alpha data.
Operating income and revenue also came in below expectations, with the latter notching USD11.5 billion, a 14% increase year-on-year.
Shares in Uber dropped over 4% in pre-market trading in New York, but pared losses by mid-morning.
The context: Analysts were watching Uber’s results closely for signs of a spending slowdown by US consumers on ride-hailing and food delivery in anticipation of tariff-driven price increases.
Speaking to CNBC on the results, CEO Dara Khosrowshahi said that while the company has not yet observed any signs of consumer weakness or users trading down to more affordable services, it’s seen “more travel spend internationally than in the US… Otherwise the consumer remains strong.”
Uber’s core categories of transportation and food delivery tend to be “quite recession-resistant,” Khosrowshahi added.
On Tuesday, Uber announced its plans to buy an 85% stake in Turkish delivery platform Trendyol for USD700 million.
