4 days ago
Uber shrugs off investor worries about robotaxis as revenues soar
The growth of Uber Technologies continues to set new records with trips and revenues at the Uber digital taxi service and Uber Eats delivery operator up 18 per cent in the second quarter of the year.
However, investor worries about the company's intention to double down on investments in autonomous robotaxis continued to weaken shares in the $180 billion American company.
Between April and the end of June, Uber Technologies delivered a 35 per cent leap in adjusted ebitda or underlying operating profits to $2.1 billion. That came on the back of an 18 per cent increase in gross bookings, revenues and trips, up at $46.6 billion, $12.6 billion and 3.2 billion respectively. Its number of active users grew 15 per cent in the period to 180 million.
With the company spinning off $2.4 billion of cash in the period, it is sitting on $7.4 billion of reserves and ordered a new $20 billion share buyback programme.
'Our platform strategy is working, with record audience, frequency and profitability across mobility and delivery,' said Dara Khosrowshahi, 56, Uber's chief executive of the past eight years. 'But we're still only beginning to unlock the platform's full potential, now with 20 autonomous partners around the world.'
It is that uncertainty of how Uber will address autonomous mobility and how a world of robotaxis and drone deliveries will look that is weighing on the shares. In trading on Wednesday, the stock slipped nearly 4 per cent to $87.25, a further drift down from the record high of $93.25 hit in May.
Shares in Uber began dipping this summer when it announced a partnership to develop robotaxis with Lucid, the electric vehicle group. Some investors fear the size of the investment needed and a shift in the company's business model to directly owning the vehicles, and the impact that could have on its money-making capabilities.
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In comments to analysts, Khosrowshahi said: 'With our cashflow and our capital allocation, we can afford to invest aggressively in the autonomous space. And at the same time to return plenty of capital to our shareholders.'
Uber is already using Waymo autonomous vehicles in Georgia and Texas, is deploying WeRide vehicles in Abu Dhabi and Dubai, and has committed to autonomous trials in London with Wayve, the Anglo-American company.
