Uber's Q1 2025: Conflicting Signals on Insurance Costs, Delivery Growth, and AV Strategies

Insurance cost moderation, delivery gross bookings growth, AV expansion and market strategy, insurance pressure and costs, AV expansion and utilization are the key contradictions discussed in Uber's latest 2025Q1 earnings call.



Strong Financial Performance and Growth:
- Uber Technologies Inc. reported a record adjusted EBITDA of $1.9 billion for Q1 2025, indicating a 35% year-on-year increase.
- This growth was supported by a 14% surge in monthly active consumers to 170 million, with mobility and delivery gross bookings growing in line with trips, driven by engagement strength and price stability.

Autonomous Vehicle (AV) Expansion:
- Uber is expanding its AV services with Waymo, starting with 100 cars in Austin, which are exceptionally utilized with high opt-in rates and positive consumer feedback.
- The company's focus on AVs is part of a strategic move to leverage Waymo's safety record and increase consumer engagement, contributing to the overall growth framework.

Delivery Segment Profitability:
- Delivery margins improved significantly, with profits reaching 3.7% EBs, a 70 basis points increase from the previous year.
- The margin expansion is attributed to advertising leverage and cost per trip reductions, driven by scale and operational efficiencies.

Insurance Cost Mitigation:
- Uber expects high single-digit insurance cost increases in the U.S. mobility business for the remainder of 2025, significantly lower than previous years.
- This improvement is due to efforts in safety technology, policy reform, and the team's focus on reducing legal system abuses to lower insurance costs and pass savings onto consumers.