Uber doubles down on robotaxi plans, shares fall on weak profit forecast
The logo for Uber Technologies is seen on a vehicle in Manhattan, New York City, New York, U.S., November 17, 2021. REUTERS/Andrew Kelly
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Aug 5 : Uber Technologies on Wednesday outlined plans to spend more than $10 billion on robotaxis over the coming years and said Waymo remained an important partner despite reports that the Alphabet unit was considering ending their alliance.
Shares of the ride-hailing company fell 4.8 per cent after the company forecast adjusted profit per share of 84 cents to 88 cents for the third quarter, below analysts’ expectations of 89 cents, according to data compiled by LSEG.
The company said on Wednesday the investments in robotaxis would largely comprise equity investments in autonomous-driving partners and balance-sheet support for fleet operations and vehicle commitments.
Uber CEO Dara Khosrowshahi, on a conference call with analysts, brushed off reports of Waymo considering ending their partnership, saying he expected the companies to continue operating together in Austin and Atlanta, while the ride-hailing company expanded ties with other autonomous vehicle developers.
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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.
“The $10 billion investment figure is in line with my own thinking,” said Adam Ballantyne, senior analyst at Uber shareholder Cambiar Investors, adding Uber would need billions of dollars over the next four to five years to support autonomous-driving partners as they scale.
It forecast third-quarter 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.
Foreign exchange is expected to trim reported third-quarter gross bookings growth by about one percentage point from last year, the company said, after boosting growth over the previous four quarters.
Uber’s second-quarter gross bookings of $58.02 billion topped analysts’ estimates of $57.06 billion, while adjusted core earnings also exceeded expectations.
The business benefited from broad-based demand across regions and services during the quarter, including travel linked to the FIFA World Cup.
Revenue rose 12 per cent to $14.19 billion, narrowly missing estimates of $14.24 billion. Uber said it added more first-time users over the past year than during any comparable period in the previous five years, helping lift gross bookings by 24 per cent.
Source: Reuters
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