Uber’s AI pivot pays off: Second-quarter bookings beat estimates despite Middle East turmoil

Uber Technologies reported a mixed first quarter but issued an optimistic outlook for the months ahead, driven by its expansion into new markets and the successful integration of AI tools.

Uber expects June quarter gross bookings between $56.25 billion and $57.7 billion, surpassing Wall Street estimates despite a 60-basis-point drag from the conflict in the Middle East. 

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This strong forecast signals the company’s strategy of keeping prices steady while pushing into high-margin areas is helping it navigate higher fuel costs and geopolitical tensions.

The company forecast Q2 adjusted earnings per share of 78 to 82 cents, slightly ahead of analyst expectations. 

Meanwhile, first-quarter revenue hit $13.2 billion, missing estimates due to U.S. winter storms and high fuel costs. Conversely, adjusted profit per share still beat expectations as reported by the Reuters.

 While ride-hailing revenue missed the mark, delivery and freight outperformed, with freight returning to growth for the first time in nearly two years. 

The Uber One membership program has surpassed 50 million users and now accounts for roughly 50% of the company’s total gross bookings.

The company has credited its increasing use of AI tools for improving operational productivity, which has allowed the company to moderate its pace of hiring.

In line with strategic expansion, growth was bolstered by a push into higher-margin areas like business platforms and new geographic markets, including Denmark and Australia. 

Unlike competitors attempting to build their own tech, Uber is pursuing a partnership led approach to autonomous vehicles. 

The company is currently working with over 20 developers to integrate robotaxis into its platform. Uber expects to facilitate autonomous vehicle trips in up to 15 cities globally by the end of 2026.