Uber Is Making All The Right Moves With Autonomous Vehicles and Delivery Expansions
Uber is driving fast — and riding high — on a wave of momentum, fueled by record Q2 2024 results, a thriving advertising business, and progress in autonomous vehicles (AVs), electric vehicles (EVs), and delivery expansion. As the world’s leading mobility and delivery platform, Uber is proving its resilience amidst economic uncertainty — and charting a course for long-term growth and profitability.
Earnings highlights: Uber’s Q2 2024 earnings report showed gross bookings up 21% on a constant-currency basis. Adjusted EBITDA surged 71% year-over-year (YoY), and Uber generated record quarterly GAAP operating income.
- Revenue grew 16% YoY to $10.7B, beating Wall Street estimates — sending Uber’s share up 11% yesterday after the report.
- CFO Prashanth Mahendra-Rajah noted that delivery EBITDA was up ~25 basis points sequentially.
Autonomous Vehicles and Delivery Is The Logical Move
Uber is making significant strides in strategic initiatives like AVs, EVs, and delivery expansion. The company believes it is uniquely positioned to offer tremendous value for AV players looking to deploy their technology at scale. Uber is in late-stage discussions with additional global AV players about joining its platform, with more announcements expected in the coming weeks and months.
- CEO Dara Khosrowshahi sees promising growth for its delivery business, especially with Uber’s expansion into the grocery and retail sectors, which have a larger market than online food delivery.
- He also sees their marketplace as “by far, the largest marketplace, global marketplace, both for mobility, delivery, and then freight as well. The marketplace will have a very, very strong position.”
Uber’s Billion-Dollar Ad Business
Uber’s advertising business, Uber Ads, has reached a net revenue annual run rate of $1B, meeting its goal set two years ago. Uber’s pitch to advertisers includes its first-party data on millions of users and various ad formats, from static shopping ads to video. Paul Wright, head of international at Uber Ads, told Business Insider that the company is exploring ways to help advertisers get more tactical about the context of a user’s trip — such as whether they’re heading to a restaurant, airport, or event.
- Uber Ads is targeting growth by providing tools to measure consumers’ attention and testing a new format called “Playable Ads,” which lets users play advertiser games to unlock promotions.
- Earlier this year, advertisers could buy Journey Ads in the Uber Rides app via platforms like The Trade Desk, Yahoo DSP, and Google’s Display & Video 360.
And what about a slowing economy? Uber isn’t seeing any softness or trading down across any income groups. In a potential downturn, Uber usually benefits from an improved driver supply, leading to lower surges, improved ETAs, and a more compelling service. Based on current trends, the CEO emphasized that Uber’s consumer base is in great shape, with a larger and more active audience.
