Uber Technologies NYSE: UBER reported its fifth consecutive quarter of gross bookings growth above 20% year over year in the third quarter of 2026, as delivery momentum helped offset mobility growth that fell short of management’s expectations.
CEO Dara Khosrowshahi said Uber reached 215 million monthly active platform consumers, who used its services more frequently than ever. Non-GAAP earnings per share rose 35% from a year earlier, while trailing 12-month free cash flow reached a record $10.4 billion.
Mobility growth was healthy but below expectations because driver supply did not keep pace with demand in several international markets, Khosrowshahi said. Delivery gross bookings rose 23%, with organic growth accelerating.
Driver Supply Pressures
CFO Balaji Krishnamurthy said elevated fuel prices had affected driver supply particularly in Brazil and India, while immigration dynamics contributed to constraints in Canada. Seasonal demand in the second half of the year has added to the pressure, executives said.
Uber is investing in driver acquisition, retention and engagement. Global supply-hours growth accelerated in October, including notable improvements in Brazil and India, Krishnamurthy said. He described the company’s growth outlook of 18% to 22% as unchanged from the prior two quarters.
In the U.S., mobility growth moderated in the third quarter, but not as much as in international markets, according to Krishnamurthy. He said higher gasoline prices were also contributing to some domestic supply pressure, while California trip growth continued to outperform the rest of the country.
Asked about the effect of supply investments on mobility profitability, Krishnamurthy said they would affect the fourth-quarter take rate but did not indicate a meaningful change in the business’s margin trajectory. At the midpoint of Uber’s fourth-quarter outlook, non-GAAP earnings per share would rise 37% year over year, he said.
Driverless Fleet Plans and Financing
Uber expects approximately 700 fully driverless vehicles on its platform by the end of 2026 and more than 2,000 by the end of 2027. Khosrowshahi said Zoox is expected to launch on Uber in Las Vegas later in November, with Motional moving to fully driverless operations soon afterward.
For 2027, Khosrowshahi cited planned additions including Nuro in California and Houston, Avride in Texas, and Pony and Momenta internationally. Uber’s longer-term goal is to reach tens of thousands of vehicles in 2028 and beyond, he said.
Krishnamurthy said Uber’s long-run expectation is for third-party capital, rather than its own balance sheet, to finance autonomous fleets. He pointed to a $1 billion financing arrangement with Santander for traditional fleet partners as a potential template and said Uber expects announcements on infrastructure and vehicle financing.
Khosrowshahi said Uber expects to hold vehicles on its balance sheet in the early stages because residual values for autonomous vehicles have not yet been established. He said the company must demonstrate fleet utilization and economics to financing partners.
Krishnamurthy said Uber believes its utilization advantage is durable and aims for autonomous trips to deliver margins comparable to human-driven trips over time.
Delivery Growth and Grocery Investment
Uber’s grocery and retail business has reached a $15 billion run rate and is growing 40% year over year, Khosrowshahi said. The company is investing in selection, affordability and the customer experience, including expanding Costco availability nationwide and improving shopping accuracy.
Khosrowshahi said U.S. delivery organic growth accelerated for a second consecutive quarter. Faster-growing grocery, retail and direct businesses contributed, while the core restaurant business also accelerated. He said the number of U.S. merchants rose about 12% year over year, and members accounted for 70% of delivery gross bookings.
Uber will be selective about operating dark stores, Krishnamurthy said. Khosrowshahi highlighted Delivery Hero’s quick-commerce and dark-store business as an attractive part of Uber’s potential acquisition, while Krishnamurthy noted that Uber had also experimented with the format in Taiwan.
Asked about a potential DoorDash and Instacart combination, Khosrowshahi said he did not expect it to affect Uber significantly. He said some merchant partners had expressed concern and interest in working more closely with Uber to maintain alternatives.
Capital Allocation and AI
Khosrowshahi said Uber’s capital priorities remain organic growth, investment in autonomous vehicles, acquisitions and share repurchases. The company plans to pull back on mergers and acquisitions as it focuses on integrating announced deals, with greater emphasis next year on organic growth, autonomy and opportunistic buybacks.
He described ezCater as a way to add specialized catering capabilities for Uber’s business customers. Krishnamurthy said ezCater is profitable and that buying it was more attractive than building a comparable business.
On artificial intelligence, Khosrowshahi said Uber is developing its own tools, including a Cart Assistant, while discussing access with third-party AI agents. He emphasized the importance of maintaining direct customer relationships rather than depending on any single outside platform.
Third-party agent activity remains small. Krishnamurthy said that in one recent week, Uber and Uber Eats handled about 320 million trips, while AI agents generated roughly 500 Uber Eats orders and four rides.
About Uber Technologies (NYSE:UBER)
Uber Technologies, Inc operates a technology platform that connects people seeking transportation and delivery services with drivers, couriers, merchants and other providers. Its offerings include rides through the Uber app and food and grocery delivery through Uber Eats.
The company also provides logistics services through Uber Freight, which connects shippers with carriers and offers tools for managing freight transportation. Uber's platform serves users and businesses across markets in North America, Latin America, Europe, the Middle East, Africa and Asia-Pacific.
Founded in San Francisco in 2009 as UberCab, the company expanded from ride-hailing into delivery and freight.
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