Uber Misses Revenue Target But Bets Big on Robotaxis in 2025

The first-quarter earnings of Uber for 2025 revealed a mixed bag of results. While the company beat profit expectations with earnings of 83 cents per share, it failed to hit revenue targets, bringing in $11.53 billion compared to Wall Street’s forecast of $11.62 billion. The stock dropped roughly 5% in premarket trading as investors digested the numbers.

Revenue Miss Despite Profit Surge

Uber’s net income hit $1.78 billion, a sharp turnaround from a $654 million loss a year ago. That jump was helped in part by gains from revalued equity stakes. However, revenue growth came in at 14% year-over-year, its slowest pace since the pandemic, stoking concerns about cooling demand in the ride-hailing market.

Uber’s gross bookings for Q1 totaled $42.8 billion, short of Bloomberg’s $43.1 billion estimate. CFO Prashanth Mahendra-Rajah blamed a stronger U.S. dollar, especially against currencies in Brazil, Mexico, and Argentina, for denting international returns.

Ride-Hailing Slows, Delivery Stays Strong

Uber’s mobility business brought in $21.18 billion in gross bookings, up 13% year-over-year but below prior quarters. Executives cited extreme weather and insurance costs as key hurdles, along with possible shifts in consumer behavior due to economic uncertainty.

In contrast, Uber Eats and delivery services grew 15%, reaching $20.38 billion in bookings. The company said 60% of Uber Eats sales now come from Uber One, its fast-growing subscription program—though it’s currently under FTC investigation for allegedly deceptive sign-up and cancellation practices.

Trips Are Up, But Prices and Confidence Are Down

Users completed 3.04 billion trips in Q1—an 18% jump from 2024. Monthly active users hit 170 million, up 14% year-over-year. However, growth in rideshare slowed to 20% at constant currency, from 24% in Q4 2024, and consumer sentiment in the U.S. dipped to a four-year low in March.

CEO Dara Khosrowshahi told CNBC there’s been more spending internationally than in the U.S., but insisted that transportation and food delivery remain “recession-resistant.”

All Eyes on Autonomous Vehicles

Uber continues to bet big on autonomous driving. Khosrowshahi called AVs the company’s “single greatest opportunity.” Uber now logs 1.5 million robotaxi trips annually, with strong early results from its Waymo partnership in Austin, where 100 robotaxis are now completing more trips than 99% of human drivers.

The company plans to grow its robotaxi fleet in Austin and expand to more U.S. cities, including Atlanta and Dallas. It’s also partnered with Volkswagen, May Mobility, Avride, and Aurora for future self-driving expansion.

Looking Ahead: Expansion in Small Cities and New Markets

Uber plans to expand its presence to hundreds more cities, especially in low-density areas where scheduled rides are growing. The taxi segment is also booming, with 60% annual growth and over 500 cities now covered.

The company is also eyeing global delivery growth, recently acquiring a $700 million controlling stake in Turkey’s Trendyol Go, part of a broader push into emerging markets like India and Brazil.

Forecast for Q2 2025

Uber expects:

• Gross bookings: $45.75 billion to $47.25 billion
• Adjusted EBITDA: $2.02 billion to $2.12 billion
• A 1.5% currency headwind, with Mobility seeing a 3% drag
  

Despite short-term softness in ride-hailing, Uber’s leaders remain focused on long-term growth, especially through autonomous tech, new cities, and international delivery markets.

Do you think Uber’s bet on robotaxis will pay off—or is it too soon to count on AV tech?

More…

• https://www.theglobeandmail.com/business/international-business/article-uber-shares-fall-as-first-quarter-revenue-miss-clouds-upbeat-forecasts
• https://www.cnbc.com/2025/05/07/uber-uber-q1-2025-earnings.html
• https://www.bloomberg.com/news/articles/2025-05-07/uber-posts-quarterly-bookings-miss-as-rideshare-growth-slows