Uber's Growth Hit by Driver Shortage, Fuel Costs

Uber's adjusted profit forecast for the fourth quarter fell short of Wall Street's expectations, as multiple factors constrained growth. The ride-hailing giant anticipates fourth-quarter adjusted profit between 95 cents and 99 cents per share, below the predicted $1.06 per share. This outlook is influenced by ongoing driver shortages and increased fuel expenses, which have collectively impacted supply growth in key international markets.

The Middle East conflict has also presented a notable headwind, with the company estimating a 75 basis-point drag on Mobility bookings growth and projecting a 100 basis-point hit for the fourth quarter. In response, Uber is increasing its investment in driver acquisition, retention, and reactivation efforts. The company foresees gross bookings ranging from $63.25 billion to $65.25 billion, with adjusted core profit projected between $3.13 billion and $3.23 billion.

Despite a 10% year-over-year revenue increase in the third quarter, reaching $14.77 billion, this represented the slowest growth since early 2021. Delivery bookings saw a 22% rise, and Freight bookings increased by 35%. Looking ahead, Uber aims to have approximately 700 fully driverless vehicles on its platform by the end of 2026 and over 2,000 by the close of 2027, focusing its capital on a select group of autonomous vehicle partners. Additionally, Uber has agreed to acquire catering marketplace ezCater, with plans for minimal further M&A activity until at least 2027.