Revenue tops expectations
Uber reported better-than-expected revenue in its fourth-quarter earnings, reaching $14.37 billion versus the $14.32 billion analysts forecast. Revenue rose from $12 billion a year earlier.
The ride-hailing platform, Uber Mobility, generated $8.2 billion, up 19% year-on-year, while delivery revenue climbed 30% to $4.9 billion. Analysts had predicted $8.3 billion for mobility and $4.72 billion for delivery, according to StreetAccount.
Earnings and net income
Adjusted earnings per share stood at 71 cents. Net income for the quarter was $296 million, including a $1.6 billion net pre-tax impact from revaluing equity investments. By comparison, net income in the prior year was $6.88 billion.
Gross bookings for the quarter reached $54.1 billion, exceeding the $53.1 billion average analyst estimate. Uber expects first-quarter gross bookings to rise at least 17% year-on-year, to between $52 billion and $53.5 billion.
Delivery drives growth
Uber’s delivery segment, initially focused on restaurants and now encompassing groceries and retail, showed the strongest growth. Partnerships with OpenTable, Shopify, and store brands including Loblaws in Canada, Biedronka in Poland, Seiyu in Japan and Coles in Australia supported expansion.
CEO Dara Khosrowshahi highlighted that delivery growth was highest in the Europe, Middle East and Africa region.
Autonomous vehicles and future expansion
Uber reported that autonomous vehicle (AV) initiatives have boosted overall trip growth in cities like Atlanta and Austin, Texas. Even human-driver trips accelerated in markets where AVs operate. Khosrowshahi emphasised that AVs could unlock a multi-trillion-dollar opportunity, enhancing Uber’s platform.
Uber expects to facilitate AV trips in up to 15 cities globally by the end of 2026, including Houston, Los Angeles, San Francisco, London, Munich, Hong Kong, Zurich and Madrid. By 2029, the company aims to be the largest facilitator of AV trips worldwide. However, Khosrowshahi warned AVs will likely remain a small portion of the rideshare market for years due to technological and regulatory hurdles.
Uber One and AI integrations
The company is expanding its Uber One subscription programme, which encourages members to book more rides and make additional purchases. Uber is also investing in its advertising business and integrating generative AI features, including ChatGPT, to help users discover services and restaurants before checkout.
Source: CNBC
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