Uber Hits Record 18% Bookings Growth, But Legal Costs and Weather Woes Rain on Parade
Like a taxi stuck in rush hour traffic, Uber’s impressive fourth-quarter performance hit an unexpected roadblock. The ride-hailing giant’s shares dropped ~7% despite gross bookings soaring 18% to $44.2B, as currency headwinds and mounting legal expenses cast shadows over its outlook. To add fuel to the fire, the company’s first-quarter guidance also fell short of analyst expectations.
- Operating profit climbed 18% to $770M but missed analyst estimates of $1.2B after setting aside $462M for undisclosed legal settlements.
- The business expects Q1 2025 gross bookings between $42B and $43.5B — nearly $1B lower than projected due to the impact of the forex fluctuations and Los Angeles fires.
Autonomous ambitions: While Uber has continued diversifying its revenue streams through partnerships with Delta Air Lines and Home Depot, the company faces challenges like rising insurance costs, which have forced price hikes in markets such as New Jersey and Southern California. Additionally, competition in the autonomous vehicle space is intensifying as Tesla prepares to launch its Cybercabs in Austin this June — the same market where Uber is helping roll out Waymo’s self-driving services. Yet with the Waymo partnership, CEO Dara Khosrowshahi remains bullish on Uber’s position to capitalize on what he sees as a “$1T-plus opportunity” in autonomous vehicles.
