Uber's revenue growth slowed as driver shortages weighed on ride-hailing

Uber has forecast adjusted profit for the fourth quarter below Wall Street expectations, as driver shortages, higher fuel costs, and the Middle East conflict have impacted ride-hailing growth in various markets. The company is addressing the situation by increasing spending on driver recruitment and retention, a move that will be closely monitored given the concurrent investment in autonomous vehicles and acquisitions.

Uber's fourth-quarter adjusted profit is expected to be between 95 cents and 99 cents per share, falling short of the estimated $1.06 per share. The Middle East conflict is estimated to drag Mobility bookings growth by 75 basis points, with an additional 100 basis point impact anticipated in the fourth quarter. Increased fuel prices and reduced driver availability have negatively affected supply growth in several international markets.

CEO Dara Khosrowshahi highlighted these challenges in prepared remarks. Despite a slowdown in third-quarter revenue to $14.77 billion, a 10% increase from the previous year, Uber still expects gross bookings of $63.25 billion to $65.25 billion, slightly lower than analysts' estimate of $64.42 billion. The company anticipates adjusted core profit between $3.13 billion and $3.23 billion, slightly below the estimated $3.19 billion.

Uber projects roughly 700 fully driverless vehicles on its platform by the end of the year and over 2,000 by 2027, with plans to focus capital on a select group of autonomous-vehicle partners. Additionally, the company has acquired catering marketplace ezCater, with no further M&A expected through at least 2027.