Uber shares fell 6% after the company gave a softer-than-expected forecast for third-quarter bookings and earnings, even as its second-quarter revenue and gross bookings showed strong growth.The ride-hailing and delivery company said revenue rose 12% year-on-year to $14.17 billion from $12.65 billion. Net income increased to $2.39 billion, or $1.17 a share, from $1.35 billion, or 63 cents a share, in the same quarter last year.The profit was broadly in line with Wall Street expectations, but investors focused on the outlook. For the third quarter, Uber expects gross bookings of $59.25 billion at the midpoint of its range, below the average analyst estimate of $59.33 billion, according to StreetAccount.The company also forecast earnings per share of 84 cents to 88 cents, below the 89-cent average estimate compiled by LSEG.Also Read: SpaceX shares slump 12% as AI spending worries overshadow early returnsBookings beat estimatesUber’s total gross bookings stood at $58 billion in the second quarter, ahead of the $57.23 billion expected by analysts, according to StreetAccount.Its core mobility business remained the biggest driver. Mobility revenue stood at $7.36 billion, while mobility gross bookings rose 22% year-on-year to $28.99 billion.Delivery revenue came in at $5.25 billion. Delivery gross bookings rose 26% to $27.46 billion.The numbers showed that demand remained strong across both rides and delivery. But the weaker third-quarter forecast raised concerns that growth may not be accelerating as much as investors had hoped.World Cup boosts ridesCEO Dara Khosrowshahi said the World Cup helped Uber’s ride-hailing business during the quarter. More than 8 million tourists took rides across host cities in the US, Canada and Mexico, he said in prepared remarks ahead of the earnings call.The event helped support mobility demand at a time when Uber is trying to grow both its ride-hailing and delivery businesses.Uber is also expanding further in food and grocery delivery. Last month, the company announced a $14.8 billion deal to acquire Germany’s Delivery Hero. The acquisition is expected to increase the number of markets where Uber can deliver food and groceries.Autonomous vehicles in focusUber also said it expects to commit more than $10 billion in the coming years to bring autonomous vehicles to market at scale.The company has been signing partnerships with robotaxi providers as it tries to build a larger role in driverless ride-hailing and delivery. Uber does not break out how many rides or deliveries are completed with human drivers versus autonomous vehicles.
Uber shares drop 6% as weak forecast overshadows strong bookings
Ubers strong second-quarter growth was overshadowed by a weak outlook, sending shares down 6% as the company ramps up autonomous-vehicle investments.










