Uber Beats on Revenue but Warns of Weak Q4 Profit as Driver Shortage and Fuel Costs Bite
Revenue rose 10% to $14.77 billion, but Uber's fourth-quarter adjusted earnings forecast fell short of expectations as the company spends more to bring drivers onto its platform.
Uber reported better-than-expected third-quarter revenue Wednesday, but warned that fourth-quarter adjusted earnings would fall short of Wall Street expectations as driver shortages, higher fuel costs and the Middle East conflict weigh on its ride-hailing business.
Revenue rose 10% from a year earlier to $14.77 billion, ahead of the $14.69 billion analysts had expected. The company's mobility and delivery units both missed revenue estimates, while freight revenue came in stronger than expected.
For the fourth quarter, Uber forecast adjusted earnings of 95 cents to 99 cents per share, below the $1.06 analysts expected. The company said the Middle East conflict reduced third-quarter mobility bookings growth and could have a larger effect during the holiday travel season.
CEO Dara Khosrowshahi said Uber is "investing significantly" to add drivers as demand outpaces supply in several markets. He said higher fuel prices and tighter driver availability have weighed on international operations, while the company is shifting incentive spending toward recruiting and keeping drivers.
Uber also expects to have about 700 fully driverless vehicles on its platform by year-end and more than 2,000 by the end of 2027. The company said it plans to focus its autonomous-vehicle investment on a smaller group of partners.