On May 7, 2025, Uber Technologies Inc. announced its financial results for the first quarter of 2025, revealing a mixed bag that saw its shares close 2.5% lower. Despite generating a net income of $1.78 billion, or 83 cents per share on an adjusted basis, the results fell short of analysts' expectations, which had anticipated 50 cents per share. This marked a significant improvement from the $654 million loss reported during the same quarter last year, largely attributed to declines in investment values.
Uber's revenue grew 14% year-over-year, reaching $11.53 billion, although this was slightly below expectations. The company reported that users spent $21.18 billion on 3 billion trips in the first three months of 2025, which translated into $6.49 billion in revenue from those transactions, a 15% increase compared to the previous year.
CEO Dara Khosrowshahi emphasized the company's ongoing strategy to maintain growth, particularly in markets where it currently has a limited number of drivers. "We kicked off the year with yet another quarter of profitable growth at scale, with trips up 18% and even stronger user retention," Khosrowshahi stated. He also highlighted the company's plans to pilot autonomous vehicles from Volkswagen and two other partners starting this summer, building on existing partnerships with Waymo to offer autonomous taxi services in select U.S. cities.
Uber's delivery segment also saw notable growth, with sales increasing 18% year-over-year to $3.77 billion. The Uber One membership program, which offers subscribers discounts and other benefits for a monthly fee, has been a driving force behind 60% of delivery bookings. Additionally, Uber's advertising service has surpassed $1.5 billion in annualized recurring revenue, fueled by a 60% increase in ad spending from restaurants.
Looking ahead, Uber projects gross bookings between $45.75 billion and $47.25 billion for the current quarter, indicating a potential year-over-year growth of 20% at the high end of the range. The company also expects adjusted EBITDA of up to $2.12 billion.
Despite the positive outlook, Uber's recent earnings report caused some concern among investors. CFO Prashanth Mahendra-Rajah indicated that the earnings miss was partly due to a decline in U.S. inbound travel, which affected the company's growth trajectory. This news, coupled with fears of reduced consumer spending amid economic uncertainties, prompted a nearly 5% drop in the stock price during early trading, although it later recovered.
Uber's journey to profitability has been a long one, with the company losing approximately $10 billion from 2016 until its initial public offering in 2019. However, it finally turned a profit in 2023, leading to its first profitable year in 2024. This turnaround has raised expectations for sustained growth, even as the company navigates challenges presented by a shifting economic landscape.
In addition to its core ride-hailing services, Uber's food delivery business has been expanding globally. The company recently acquired an 85% stake in Trendyol Go, a Turkish food and grocery platform, for $700 million. This acquisition is part of Uber's strategy to enhance its delivery offerings and tap into new markets.
As Uber continues to innovate and expand, the company faces scrutiny regarding how external factors, such as rising insurance costs and changing consumer behavior, may impact its operations. Rising auto insurance costs have particularly affected driver earnings, prompting Uber to increase its short-term and long-term insurance reserves.
In summary, Uber's first-quarter results reflect a company that is growing and adapting to market demands, yet facing challenges that could affect its momentum. As it moves forward with plans for autonomous vehicle integration and global expansion of its delivery services, Uber is poised to maintain its position as a leader in the ride-hailing and delivery sectors.
