Uber commits $10B to robotaxis, shares fall on weak forecast

Uber CEO Dara Khosrowshahi announced plans to commit over $10 billion to autonomous vehicles over the coming years, aiming to become "the world's leading commercialization platform for autonomous vehicles" Source: Gizmodo. The investment will largely go to equity stakes in AV partners and support for their fleets Source: CNA. Despite the ambitious plan, Uber's stock fell up to 6% after the company forecast third-quarter adjusted earnings per share of 84–88 cents, below analysts' expectations of 89 cents Source: CNBC. Revenue rose 12% to $14.19 billion, narrowly missing estimates Source: CNA.

Robotaxi strategy

Uber's strategy is to be the platform that robotaxi operators plug into, rather than build the technology itself. The company has partnered with over 30 companies, including Wayve, which just secured a permit to launch a supervised robotaxi service in London Source: Gizmodo. Khosrowshahi emphasized a "more deliberate" pace for AV adoption, citing the public backlash against AI and data centers as a cautionary tale Source: Gizmodo.

Waymo relationship

Despite reports of a fraying partnership, Khosrowshahi insisted Waymo remains "a very important partner," with operations continuing in Austin and Atlanta Source: The Verge. However, The Next Web reports that Waymo is ending exclusive deals in those cities by early 2028, and Waymo increasingly sells rides on its own app, showing it can cut Uber out Source: The Next Web. Khosrowshahi downplayed the significance of robotaxi rides, noting they account for "less than 0.5 percent" of Uber's trip volume Source: The Verge.

Market reaction

The weak forecast overshadowed strong second-quarter results, including gross bookings of $58 billion, up 24%, and record free cash flow Source: The Next Web. Uber also announced a $14.8 billion deal to acquire Delivery Hero Source: CNBC. Shares are down 12% this year Source: CNBC.