Image Source: CNBC
Robotaxi ambitions are becoming a bigger part of Uber’s growth story, but investors focused on weaker-than-expected guidance after the company released its second-quarter results Wednesday. Uber shares closed 5.3% lower, adding pressure to a stock that was already down 12% this year through Tuesday, while the Nasdaq had gained 14% over the same period.
Uber’s Robotaxi Strategy Faces a Critical Test
Uber reported adjusted earnings per share of 81 cents, matching the average analyst estimate compiled by LSEG. Revenue reached $14.19 billion, slightly below the $14.24 billion expected. Despite the modest revenue miss, sales increased 12% from $12.65 billion a year earlier.
Net income climbed to $2.39 billion, or $1.17 per share, compared with $1.35 billion, or 63 cents per share, in the same quarter last year. The company’s results showed continued demand across both its mobility and delivery businesses.
- Mobility revenue reached $7.36 billion.
- Delivery revenue totaled $5.25 billion.
- Mobility gross bookings increased 22% to $28.99 billion.
- Delivery bookings jumped 26% to $27.46 billion.
- Total bookings reached $58 billion, above the $57.23 billion estimate from StreetAccount.
The main disappointment came from the outlook. Uber expects third-quarter bookings of $59.25 billion at the midpoint of its forecast range, below the $59.33 billion average estimate. Its projected earnings of 84 cents to 88 cents per share also fell short of the 89-cent analyst expectation, according to LSEG.
Explosive Autonomous Vehicle Investment Plans
Chief Executive Officer Dara Khosrowshahi said Uber plans to commit more than $10 billion over the coming years to bring autonomous vehicles to market at scale. The company is working with several autonomous driving companies and sees itself as a critical platform for connecting robotaxi operators with riders.
Uber does not disclose how many of its rides or deliveries are completed by autonomous vehicles. However, Khosrowshahi said autonomous trips currently account for less than 0.5% of Uber’s approximately 300 million weekly trips. That figure highlights both the early stage of the market and the substantial opportunity if driverless services become widely available.
The company is also building its own AV Lab. Khosrowshahi said the lab is focused on accelerating the development and training of autonomous systems for ride-hailing applications. Uber can gather a broad set of data from vehicles operating in real-world ride-hailing conditions and use that information to help improve safety and performance.
Waymo Relationship Shifts as Wayve Gains Momentum
Uber has described itself as a partner to the broader autonomous vehicle industry rather than a company dependent on one provider. That strategy became especially important as its relationship with Waymo changes. The two companies recently said they will end an exclusive arrangement in Atlanta and Austin, Texas, by early 2028.
Khosrowshahi praised Waymo’s product during Uber’s earnings call but emphasized that Uber does not want to rely on a single autonomous vehicle partner. Robotaxi services are already operating outside Uber’s platform in markets such as Phoenix, Los Angeles and San Francisco. The CEO said Uber’s trip growth accelerated in those areas compared with the first quarter.
Uber also announced progress in London with autonomous driving company Wayve. Transport for London has granted Private Hire Vehicle licenses to Wayve, which plans to begin operating vehicles with a safety driver onboard. More than 100,000 people have reportedly signed up to become early riders.
The developments show how quickly competition is expanding across the autonomous mobility sector. Waymo, Wayve and other robotaxi providers are developing the technology, while Uber is attempting to become the central marketplace and logistics network for driverless transportation.
What Uber’s Robotaxi Push Means for Investors
Uber’s immediate challenge is balancing major long-term investments with pressure to deliver reliable near-term growth. The company’s mobility and delivery businesses remain strong, and the World Cup helped boost rides across host cities in the United States, Canada and Mexico. More than 8 million tourists used rides in those locations during the quarter.
Still, the weaker forecast suggests investors may demand clearer evidence that autonomous vehicles can generate meaningful revenue without damaging profitability. The transition could affect drivers, riders, delivery workers and competing transportation companies.
For now, Uber’s robotaxi strategy remains an ambitious investment rather than a major contributor to current bookings. The company is betting that its data, customer base and global marketplace will give it a powerful position when autonomous services move from testing into widespread commercial use.
Frequently Asked Questions
Why did Uber shares fall?
Uber shares dropped 5.3% after the company issued third-quarter bookings and earnings guidance that trailed analyst estimates, despite strong second-quarter bookings growth.
How much is Uber investing in autonomous vehicles?
Uber expects to commit more than $10 billion over the coming years to help bring autonomous vehicles to market at scale.
What is Uber’s relationship with Waymo?
Uber and Waymo are changing their exclusive arrangement in Atlanta and Austin, which is expected to end by early 2028. Uber says it wants multiple autonomous vehicle partners.
How many robotaxi trips does Uber currently provide?
Autonomous vehicle trips account for less than 0.5% of Uber’s roughly 300 million weekly trips, according to CEO Dara Khosrowshahi.
