Uber's Delivery Segment Shines Amidst Challenges

Uber's delivery segment has outperformed expectations, leading to a rating downgrade. Despite a challenging macroenvironment, the company has navigated the situation effectively. The delivery segment's standout performance has been a key factor in this.

Uber Technologies (NYSE:UBER) has reported strong second-quarter earnings, with its delivery segment standing out as a key driver of growth. Despite a challenging macroenvironment, the company has navigated effectively, posting adjusted earnings per share (EPS) of $0.63, beating the $0.62 estimate [1]. Revenue rose 18% year-over-year (YoY) to $12.7 billion, surpassing expectations of $12.47 billion [1]. Gross bookings climbed 17% to $46.76 billion, slightly above the $46.42 billion forecast [1].

The delivery segment's performance was particularly noteworthy, with revenue rising 25% to $4.1 billion and adjusted EBITDA surging 48% [2]. This growth was driven by a 15% increase in monthly active platform users and a 9.2% sequential quarter-over-quarter (QoQ) growth in total gross bookings [2]. The delivery segment's standout performance was highlighted by Andrii Yalanskyi, who noted that it has seen incremental growth across key metrics, unlike the mobility segment [2].

Uber's pivot from Restaurants to Restaurants & Groceries has been a game changer, turbocharging growth in the delivery segment. The company is also capitalizing on cross-platform activity between Uber (rides) and Uber Eats apps, further boosting delivery growth [2]. The Uber One Membership program also saw significant growth, with a 60% YoY increase in members, crossing 36 million [2].

Uber's AV ambitions continue to progress, with new partnerships announced in Q2. The company is leveraging its mobility data to improve the safety and quality of AV services, solidifying its role as a key player in the AV space [2]. Despite challenges, Uber's AV story remains ambitious, realistic, and on track.

Uber's stock has underperformed the S&P 500 (SP500) since May 2025, gaining 7.9% compared to the SP500's 10.9% growth [2]. Despite this, the company's strong Q2 performance and forward-looking guidance have led to a rating downgrade by some analysts, who now expect the company to outperform the market in the coming quarters.

References:
[1] https://site.financialmodelingprep.com/market-news/fmp-uber-tops-q2-expectations-and-announces-$20-billion-buyback-plan
[2] https://seekingalpha.com/article/4809736-uber-delivery-segment-delivers-a-standout-performance-rating-downgrade