Uber plans to deploy over 2,000 robotaxis next year to reassure investors about its autonomous bet, as its core ride-hailing business faces headwinds from driver shortages and elevated fuel prices. The San Francisco-based company reported mobility revenues of approximately $7.5 billion in the third quarter, falling about $200 million short of analyst expectations. Group revenues reached $14.8 billion, slightly above forecasts, but operating profit of $1.4 billion sharply missed expectations of $2.2 billion after the company set aside $484 million for legal and tax settlements.
Chief Executive Dara Khosrowshahi attributed the pressure to higher fuel costs stemming from the Middle East war, noting the situation is expected to worsen in the fourth quarter. Uber is taking steps to incentivize drivers through improved fees and sign-up bonuses. The company faces intensifying competition in the ride-hailing market from autonomous platforms such as Alphabet's Waymo, with shares down nearly 20% this year.
Uber is on track to have about 700 fully driverless vehicles on its platform this year, rising to more than 2,000 by the end of 2027. The company has pledged to spend more than $10 billion expanding its robotaxi network and aims to deploy over 120,000 driverless vehicles over time. Uber operates limited services in nine cities globally, including Austin, Atlanta, and London, with plans to add up to 15 more this year.
Rival Waymo has about 4,000 vehicles on the road, mostly in the US, and aims to have more than 8,000 cars by year-end.
Source: Financial Times Companies · Summarized by HeadlinesBriefing