Uber intensifies robotaxi plans, shares fall on weak profit forecast

Uber forecast weaker-than-expected Q3 earnings as it reaffirmed heavy investments in robotaxis and acquisitions despite robust second-quarter demand

Uber Technologies forecast current-quarter (Q3) adjusted earnings below Wall Street estimates on Wednesday, saying that foreign exchange would trim bookings growth and reaffirming plans to invest heavily in robotaxis and acquisitions. 

The global ​ride-hailing and delivery giant's capital allocation ​has become a key investor focus after it announced a $14.8-billion deal for ​Delivery Hero last month, which it plans to fund with existing liquidity and debt. 

The company on Wednesday also outlined plans to spend more than $10 billion on autonomous vehicles over the coming years.  It forecast Q3 gross bookings of $58.25 billion to $60.25 billion, broadly in line with ‌analysts' expectations of $59.21 billion, according to data compiled by LSEG. Uber’s Q2 gross bookings of $58.02 billion topped analysts’ estimates of $57.06 billion. 

 

The business benefited from broad-based demand across regions and services during the quarter, including travel linked to ‌the ??Fifa World Cup, Uber CEO Dara Khosrowshahi said. More than 8 million tourists used ​Uber in host cities during the tournament, according to the company.