Uber's Ride-Sharing Business Misses Estimates Despite Strong Delivery Results

Uber's rideshare division missed Wall Street estimates, with total gross bookings at $46.8bil, topping estimates due to a strong food-delivery unit. Bookings for the rideshare division fell short of projections, but Uber expects an 18% to 21% growth rate in the current quarter, faster than the 17% gain in Q2. The company also announced new share buybacks of $20bil.

Uber Technologies Inc. (Uber) reported its second-quarter financial results, with total gross bookings reaching $46.8 billion, surpassing analysts' estimates of $46.6 billion. The company's rideshare division, however, fell short of Wall Street's projections, with $23.8 billion in bookings compared to an average estimate of $23.9 billion. Despite this, Uber expects an 18% to 21% growth rate in the current quarter, which would be faster than the 17% gain seen in the second quarter [1].

The strong performance of the food-delivery unit contributed significantly to the overall gross bookings, offsetting the underperformance of the rideshare division. The company's delivery business saw increased user activity in the US, Australia, Canada, and Mexico, with an uptick in grocery and retail merchants on the platform. Additionally, the acquisition of Turkish delivery app Trendyol Go at the end of the second quarter is expected to boost business in that region [1].

Uber's rideshare division has been actively innovating to improve affordability and cater to different user needs. The company introduced cheaper pooled rides and a monthly ride pass allowing commuters to lock in prices on frequently taken routes in May. These efforts are part of Uber's strategy to cross-sell its delivery and rideshare services, with 12% of annualized delivery bookings generated via the Eats tab within the Uber rideshare app [1].

The company also announced new share buybacks of $20 billion, reflecting its continued confidence in the business. This comes after a $7 billion buyback authorization from early 2024. The additional buybacks will help Uber manage its cash flow and potentially boost its stock price [1].

Uber's focus on expanding its high-margin loyalty program, investing in habit-forming products like the Price Lock Pass, and forging ahead with robotaxi partnerships will be key to setting it apart in the industry. The company has more than 20 strategic alliances in the autonomous driving space and is actively seeking external financing to scale its robotaxi operations [1].

References:
[1] https://www.latimes.com/business/story/2025-08-06/ubers-ride-results-disappoint-even-as-bookings-top-estimates