Uber just delivered its strongest quarter in nearly two years, posting record trip volume growth that caught Wall Street off guard. The ride-hailing giant beat third-quarter revenue expectations with $13.47 billion, up 20% year-over-year, while logging 3.5 billion trips - the largest volume increase in company history outside the post-COVID rebound. Despite the beat, shares tumbled 4% as investors digest mixed earnings metrics.
Uber delivered a quarter that reinforced its position as the undisputed leader in ride-hailing and food delivery, though the market's initial reaction suggests investors are parsing through the details. The company's $13.47 billion in third-quarter revenue easily topped Wall Street's $13.28 billion estimate, driven by what CEO Dara Khosrowshahi called the company's strongest performance since late 2023.
The real story lies in the operational metrics. Uber logged 3.5 billion trips during the quarter, representing a 22% jump from the prior year and marking the largest trip volume increase in the company's history outside the post-pandemic recovery period. Monthly active platform consumers grew 17% to 189 million, showing the platform's expanding reach across global markets.
"This was our strongest growth since the end of 2023 and the largest trip volume increase in Uber's history outside the post-Covid rebound," Khosrowshahi wrote in prepared remarks. The CEO attributed the surge to the company's dual focus on innovation and affordability - a strategy that's clearly resonating with consumers amid ongoing economic uncertainty.
Both of Uber's core business segments delivered robust growth. The Mobility division, which includes ride-hailing services, generated $25.11 billion in gross bookings, up 20% year-over-year. More impressively, the Delivery segment - encompassing Uber Eats and freight services - posted $23.32 billion in gross bookings, reflecting 25% growth that underscores the company's successful diversification beyond its ride-hailing roots.
The earnings picture, however, presents a more complex narrative that likely explains the stock's decline. Uber reported earnings per share of $3.11, but analysts noted confusion around comparability to the expected 68 cents from LSEG estimates. The company's net income nearly tripled to $6.6 billion, though this figure included substantial one-time benefits: a $4.9 billion tax valuation release and $1.5 billion in pre-tax benefits from equity investment reevaluations.
Stripping away these accounting adjustments, Uber's adjusted EBITDA rose 33% to approximately $2.26 billion, roughly meeting StreetAccount's projections. This metric provides a cleaner view of the company's operational performance and suggests the underlying business momentum remains strong.
