Uber Profit Forecast Dips Amid Driver Shortages

Uber has forecast adjusted profit for the fourth quarter that falls below Wall Street's expectations, a result of challenges including driver shortages and elevated fuel prices impacting international markets. The company noted that the Middle East conflict also presented a drag on its Mobility bookings growth. CEO Dara Khosrowshahi indicated that tighter driver availability in several international markets, alongside factors like immigration flows in Canada, have constrained supply growth. Uber is increasing spending on driver acquisition, retention, and reactivation to address these issues. Looking ahead, Uber anticipates gross bookings and adjusted core profit to be within a range that aligns closely with analyst estimates. The company also revealed plans to have about 700 fully driverless vehicles on its platform by the end of the year, with a goal of over 2,000 by the end of 2027, focusing its autonomous vehicle investments on a select group of partners. In a strategic move, Uber has agreed to acquire the catering marketplace ezCater. Beyond its autonomous vehicle investments, the company stated its intention for minimal to no further mergers or acquisitions until at least 2027.