Uber Looks to AI and Autonomous Vehicles to Drive Next-Gen Growth

Core Insights - Uber's third-quarter 2025 earnings report highlights growth in core ride-hailing and delivery services, with a focus on leveraging data, AI, and autonomous vehicles for future expansion [1][3] Financial Performance - Total trips increased by 22% year over year, while gross bookings rose by 21%, indicating volume-driven growth [3] - Average pricing remained stable, and audience size grew by 17% with engagement up by 4% [3] - The company anticipates continued strong performance in Q4, projecting high-teens growth in gross bookings [3] Strategic Initiatives - Uber aims to enhance cross-platform engagement, with only 20% of consumers currently using both mobility and delivery services, but these users spend three times more and have a 35% better retention rate [4][5] - The company is implementing in-app cross-selling prompts and contextual offers to increase user engagement [4] Membership Growth - Uber One membership has expanded to 36 million members across 42 countries, up from 28 million a year ago, with penetration reaching about two-thirds of delivery gross bookings [6] - Membership offers benefits such as 6% cash back on rides and no delivery fees, although it is initially margin-dilutive [7] AI Integration - Generative AI is being integrated across Uber's platform to enhance productivity and optimize operations [7] - The company is also using AI to create new work opportunities for drivers through its multiple gigs initiative [8] Autonomous Vehicle Development - Uber's partnerships with Nvidia and Stellantis are crucial for integrating human drivers with Level 4 autonomous vehicles [9] - Initial deployments with Waymo in Austin and Atlanta show promise, although autonomous vehicles are not expected to be profitable for several years [10] Delivery Service Expansion - Delivery services have seen their fastest growth in four years, with grocery and retail orders reaching a $12 billion gross bookings pace [11] - This growth in grocery and retail is expected to introduce more users to online food delivery services [11]