Uber predicts the outlook for the quarter is stronger than expected, but there are concerns that despite Donald Trump’s leadership, our consumers spend less on rides and food.
Total bookings were the total amount of total customer spending in the three months ended June 30, between $45.8 billion and $47.3 billion, with analyst estimates of $45.8 billion, according to Alpha Alpha data. Its forecast for adjusted revenues is also ahead of schedule.
"Uber started this year against the backdrop of headlines in trade and economic policies," said CEO Dara Khosrowshahi, who added that the company focused on lowering prices and expanding its self-driving car partnership.
Analysts are looking for signs that U.S. consumers are dialing spending on rides and food delivery, with tariffs expected to stimulate prices.
Uber reported total bookings rose 14% in the first quarter to $42.8 billion, slightly below analyst expectations of $43 billion, according to visible Alpha data.
It added that a strong dollar total of approximately $1.7 billion was set to challenge continue to be smaller in the current quarter.
Uber's latest result is because the food and grocery delivery market is in a consolidation.
Uber rival Doordash announced plans to acquire London-listed Deliveroo for £2.9 billion on Tuesday, while Prosus, the European investment arm of South African group Naspers, reached a 4.1 billion euro deal to take Europe's largest food delivery group privatized in February.
On Tuesday, Uber announced an agreement to acquire an 85% stake in Turkish food and grocery delivery platform Thryol for $700 million.
Khosrowshahi said autonomous vehicle technology is "the biggest opportunity for Uber." The group puts its core in its approach to autonomous vehicles after selling its own autonomous driving research division to Aurora Innovation in 2020.
Uber has signed 18 deals worldwide with a suite of Robotaxi providers, automakers and self-driving car developers, including Volkswagen in Germany, Pony.ai and Weride in China, and on the way to the UK.
Khosrowshahi said that in partnership with Alphabet's Waymo in Austin, the company began launching a hosted fleet of self-driving Jaguar I-Pace vehicles in March, which has exceeded its expectations.
Uber manages and dispatches about 100 vehicles in Austin, with plans to launch hundreds in the coming months and in Atlanta in the summer.
“If these companies want to be commercialized, Uber’s scale would be a compelling piece,” said Deepak Mathivanan, senior equity analyst at Cantor Fitzgerald. “We have previously advocated that Uber play a more direct role…but) the developments we see in space guarantee the platform strategy.”