Release Date: August 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gross bookings grew 22% year-on-year to over $58 billion, marking the fourth consecutive quarter of above 20% growth.
- Non-GAAP EPS grew 35% year-over-year, and trailing 12-month free cash flow exceeded $10 billion for the first time.
- The acquisition of Delivery Hero will expand Uber's reach to nearly 100 markets, doubling the number of markets where it can offer both mobility and delivery services.
- Uber is on track to be live in 15 cities with autonomous vehicles by year-end, with multiple partner launches planned.
- AI-driven initiatives, such as Cart Builder, are increasing average order sizes by up to 2x, and AI coding tools have doubled code output per engineer, improving productivity.
Negative Points
- Brazil mobility trips saw softness due to intense competition in the food delivery space, driving up costs for two-wheeler supply.
- The UK business model change caused a 400 basis point decline in mobility take rate, which is an optical impact but affects reported revenue.
- Uber's AV investments, totaling $10 billion over multiple years, will have a P&L impact as deployments scale, though the exact timing is not yet disclosed.
- The company's relationship with Waymo is evolving, and Uber is working to reduce dependence on any single AV partner, which may create uncertainty.
- Regulatory challenges for AVs, including concerns about safety and congestion, could slow the pace of adoption and geographic expansion.
Q & A Highlights
Q: What are the main milestones or progress sign points you're focused on in your mobility and delivery AV strategy over the next 12 months?
A: Dara Khosrowshahi (CEO) stated that the most important milestones are launches and the number of cities where Uber is live with vehicle operators. They are on track to be live in 15 cities by year-end, up from seven, with launches planned for NeuroLucid in the Bay, Zeus in Vegas, Wave in London and Tokyo, and Baidu in London. For 2027, they expect to add more partners, including Rivian in San Francisco and Miami by 2028, and Nvidia in LA and San Francisco by 2027. The focus is on launching markets, accelerating data collection for end-to-end models, and commercializing the model. On the delivery side, they are increasingly optimistic about drones, which can cut delivery times from 30 minutes to 10-15 minutes, and are partnered with companies like Flytrex.
Q: Can you unpack the drivers of the U.S. Mobility acceleration and how much is permanent signal versus World Cup effects? Also, what is driving the record first-time user momentum?
A: An unidentified company representative (likely CFO) explained that the World Cup was a benefit but as expected, and the U.S. momentum is consistent with expectations for acceleration through the year. The drivers are threefold: 1) Insurance becoming a tailwind, with savings reinvested into the market, particularly in California, where LA and SF trip growth is outpacing the rest of the country; 2) Product innovation velocity, including premium products like Reserve, U4B (40% YoY growth), and Black, as well as affordable options like Wait&Save 3) Sparse markets, where less than 10% of eligible consumers have used Uber in the past 12 months versus over 50% in dense markets. Dara Khosrowshahi added that first-time user growth is driven by low-cost products (two-wheelers, three-wheelers, Wait&Save), sparse market expansion, cross-platform usage (only 20% of consumers use both Rides and Eats, growing 1.5x faster than single-product users), and new products like Women Preferred and Uber Teens.
Q: Can you discuss the competitive environment in Brazil and any other markets needing investment in Moto and low-cost mobility products? Also, can you clarify the relationship with Waymo and the Austin and Atlanta partnerships?
A: Dara Khosrowshahi (CEO) noted that Brazil has always been competitive in mobility, but there is now enormous competition in the food business from DD Food and Mateswan, all competing for two-wheeler delivery supply, which can switch between delivering food and moving people. This has increased the cost of securing supply, and Uber is moving incentives from the consumer side to the delivery side. Uber continues to hold its share in Brazil, but share is moving from mobility to delivery due to heavy investment. Regarding Waymo, it remains a very important partner, and Uber will continue to operate in Austin and Atlanta next year. However, Uber is ensuring it is not dependent on one partner, with a plethora of newer players in the AV ecosystem. Uber will be in 15 markets by year-end, and AVs currently represent less than 0.5% of overall trip volume, compared to AI's 20% penetration in search, indicating AV adoption will be slower and more deliberate.
Q: Can you talk about the evolving regulatory environment in autonomous vehicles and how policy plays into adoption and geographic expansion? Also, what has allowed you to temper headcount additions relative to your initial plan?
A: Dara Khosrowshahi (CEO) emphasized that Uber is a highly regulated business and routinely talks to lawmakers about concerns regarding AI and AVs, including job loss, safety, and congestion. He cited real issues like safe driving through school zones, interaction with emergency vehicles, and reactions to power failures. He stressed the need for dialogue and smart regulation to enable sustainable innovation, avoiding the public blowback seen in AI. An unidentified company representative (likely CFO) addressed headcount, noting a track record of discipline. Investments in AI are resulting in productivity gains, with near 100% adoption of AI-based coding tools among engineers and a doubling in code output per engineer. This has allowed Uber to moderate headcount additions. Additionally, organizational effectiveness reviews have led to surgical headcount reductions of 10-20% in some organizations, with savings reinvested into the marketplace.
Q: How do you think the $10 billion investment in AVs flows through the income statement over time, and what are the margin impacts? Also, can you comment on Lucid's ability to make vehicle commitments and the take rate?
A: An unidentified company representative (likely CFO) explained that the $10 billion AV investment is over a multi-year period and consists of two parts: 1) Equity investments in AV software partners with clear milestones, which help catalyze external fundraising (for every $1 invested, partners raise an additional $2.50); 2) Selective balance sheet use to bootstrap the AV infrastructure, including fleet ops, real estate, and OEM off-take commitments for the 120,000 vehicle commitments. Uber is also working with third-party financial sponsors to financialize the ecosystem. P&L impact will be sized clearly as deployment scales. Dara Khosrowshahi added that Lucid's new CEO, Silvio, is taking bold steps to refactor the cost base and focus on product quality. The B2B program with Uber is highly strategic, with a beautiful car in the $70,000-$80,000 range. The integration of Neuro's AI into Lucid's driver training is going well, and Lucid is backed by the Public Investment Fund, a long-term investor in Uber. On take rates, the CFO noted that the UK business model change accounts for about 400 basis points of the 500 basis point decline in mobility revenue margin, which is an optical impact. The net take rate remains broadly stable, and mobility operating income margin remains strong at 7.6%.
Q: Can you quantify how much better the Uber consumer experience can be because of AI? Also, what is the timing for returning to a more normalized level of share repurchases?
A: Dara Khosrowshahi (CEO) highlighted several AI-driven improvements: 1) Cart Builder, where AI interacts with consumers to build a cart, resulting in carts twice the size of non-AI built carts; 2) Larger models making smarter predictions about consumer behavior, leading to more relevant ads, better organic search results, and deal ranking algorithms; 3) AI suggesting items likely to be out of stock. He stressed that AI will contribute through thousands of small improvements rather than one giant hit,
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
