Uber’s delivery business surges 30% in fourth quarter earnings

Uber reported better-than-expected revenue in its fourth-quarter earnings, fueled by strong performance in its delivery business. Total revenue reached $14.37 billion, up from $12 billion a year earlier, slightly beating the $14.32 billion analysts had forecast.

The ride-hailing segment generated $8.2 billion, a 19% increase, while delivery revenue soared 30% to $4.9 billion. Partnerships with platforms like OpenTable and Shopify, as well as retail brands including Loblaws, Biedronka, Seiyu, and Coles, helped fuel the growth. Gross bookings for the quarter totaled $54.1 billion, surpassing the expected $53.1 billion.

CEO Dara Khosrowshahi highlighted that delivery growth was particularly strong in Europe, the Middle East, and Africa. He also emphasized Uber’s ongoing investment in autonomous vehicles, noting that AVs have already accelerated overall trip growth in cities like Atlanta and Austin. Uber expects AV rides to be available in up to 15 cities worldwide by the end of 2026.

The company is also focusing on expanding its Uber One subscription program, boosting ride and delivery usage among members, and investing in its advertising business. Integrations with ChatGPT aim to enhance discovery and streamline customer checkouts, reflecting Uber’s push into AI-powered services.

Net income for the quarter was $296 million, down from $6.88 billion the previous year, influenced by a $1.6 billion pre-tax headwind from revalued equity investments.