Uber’s Delivery Business Narrows Gap With Ride-Sharing. Now Comes the Robo-Taxi Push.

Uber reported reported better-than-expected third-quarter earnings. (Jose Sarmento Matos/Bloomberg)

Key Points

Uber reports adjusted earnings of 88 cents a share, beating analysts’ estimates.
Uber plans to expand its autonomous vehicle operations.
CEO Dara Khosrowshahi says Uber plans to have tens of thousands of autonomous vehicles.

Uber reported better-than-expected third-quarter earnings Wednesday as its fast-growing delivery business continued to close the gap with its core ride-hailing operations ahead of a planned expansion of its robo-taxi fleet.

The company reported adjusted earnings of 88 cents a share, above Wall Street’s estimate of 86 cents, according to FactSet. Revenue grew 10% year over year to $14.76 billion, exceeding consensus calls for $14.65 billion.

Gross bookings, the total value of rides, deliveries, and other transactions on Uber’s platform, grew 20% year over year to $59.819 billion, narrowly missing estimates of $59.832 billion.

Gross bookings for Uber’s delivery business rose 22% year over year to $28.54 billion, compared with an 18% increase to $29.51 billion for mobility, which fell short of Wall Street’s estimate of $29.8 billion.

Uber’s adjusted earnings before interest, taxes, depreciation, and amortization, or Ebitda, rose 31% year over year to $2.96 billion, while its adjusted Ebitda margin as a percentage of gross bookings expanded to 5% from 4.5% a year earlier.

The improving profitability came as Uber prepares to expand its autonomous vehicle operations. CEO Dara Khosrowshahi said in a news release that Uber plans to have 700 driverless vehicles on its platform by the end of 2026, with that number growing to more than 2,000 in 2027.

Khosrowshahi said in a CNBC interview Wednesday that demand for Uber’s ride-hailing services is currently outpacing supply, even as trips increased 16% year over year and active users grew 14%.

Rather than raising prices, Khosrowshahi said Uber would invest in expanding its fleet to meet growing demand.

The company expects to have tens of thousands of autonomous vehicles on its platform by 2030, Khosrowshahi said. The expansion could help Uber meet demand without relying entirely on human drivers, but the investments could weigh on profitability.

Uber is preparing to invest heavily in its shift toward autonomous vehicles. The company plans to invest as much as $10 billion in robo-taxis, including $7.5 billion to build its own fleet and $2.5 billion in equity stakes in self-driving technology companies.

It has struck deals with Rivian and Lucid , while working with Alphabet’s Waymo to offer autonomous rides in Phoenix and Atlanta. Uber also partnered with Nvidia on plans to deploy robo-taxis across 28 cities globally by 2028.

Uber’s delivery business has also expanded through recent acquisitions. The company announced last month it would buy catering platform ezCater for $2.3 billion, and it launched a $14.8 billion takeover offer for Delivery Hero in July.

Uber shares rose 1.1% to $67.35 in premarket trading on Wednesday after ending Tuesday’s session down 0.1%. The stock has fallen 20% this year through the market close on Tuesday. Rival Lyft added 1% on Wednesday, while shares have fallen 13% in 2026.

Write to Ty Roush at tyler.roush@barrons.com

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