Uber Technologies posted fourth-quarter revenue that exceeded analyst expectations, fueled by a 30% jump in its delivery business. Despite the strong top-line performance, shares retreated in premarket trading as the company outlined aggressive plans to expand its autonomous vehicle network to 15 cities by 2026.
By The Numbers: Q4 Performance
Uber reported revenue of $14.37 billion for the quarter ended in December. This figure topped LSEG consensus estimates of $14.32 billion.
- Metric: Total Revenue.
- The Change: Up 20% year-over-year from $12 billion.
- The Beat: Surpassed analyst expectations by roughly $50 million.
Net income for the quarter came in at $296 million. This is a significant drop from the $6.88 billion reported a year earlier. The company attributed this decline to a $1.6 billion pre-tax headwind resulting from the revaluation of equity investments.
Delivery Outpaces Mobility
While Uber’s core ride-hailing business grew, the delivery segment provided the strongest momentum.
- Mobility (Rides): Revenue hit $8.2 billion, up 19%. However, this slightly missed analyst forecasts of $8.3 billion.
- Delivery (Eats/Retail): Revenue climbed 30% to $4.9 billion, beating the $4.72 billion forecast.
CEO Dara Khosrowshahi noted that delivery growth was highest in the Europe, Middle East, and Africa regions. Expansion was driven by new retail partnerships with major international brands, including Loblaws in Canada and Seiyu in Japan.
The Autonomous Strategy
Uber is aggressively pivoting toward an autonomous future. Khosrowshahi described autonomous vehicles (AVs) as a “multi-trillion dollar opportunity.”
The company announced plans to facilitate AV trips in up to 15 cities globally by the end of 2026. Upcoming markets include Houston, Los Angeles, London, and Munich.
Data from pilot programs in Atlanta and Austin suggests that AVs are not cannibalizing human drivers. Instead, the company claims that trip growth “significantly accelerated” in these markets. However, the CEO cautioned that AVs will remain a small portion of the total rideshare category for several years due to regulatory and technical hurdles.
Forward Guidance
Looking ahead, Uber expects gross bookings for the first quarter of 2025 to range between $52 billion and $53.5 billion. This represents a year-over-year increase of at least 17%.
The company also highlighted ongoing investments in its advertising business and “Uber One” membership program. Additionally, new integrations with Generative AI tools like ChatGPT are being deployed to help users discover services before checking out.
SOURCES
- Uber Technologies Q4 Earnings Release.
- LSEG Consensus Estimates.
- StreetAccount Analyst Data.
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