Uber to be profitable on AV operating income margin
Uber delivered a record Q2 with bookings and profitability exceeding expectations, driven by broad-based momentum across mobility and delivery. The company is aggressively expanding its autonomous vehicle ecosystem through strategic partnerships and substantial investments in physical AI infrastructure, while also consummating a major acquisition of Delivery Hero to enhance its global footprint. Total gross bookings grew 22% YoY to $58B+, exceeding guidance, with non-GAAP EPS up 35% and trailing 12-month FCF surpassing $10B.
Buzzberg readUber to be profitable on AV operating income marginUber delivered a record Q2 with bookings and profitability exceeding expectations, driven by broad-based momentum across mobility and delivery. The company is aggressively expanding its autonomous vehicle ecosystem through strategic partnerships and substantial investments in physical AI infrastructure, while also consummating a major acquisition of Delivery Hero to enhance its global footprint. Total gross bookings grew 22% YoY to $58B+, exceeding guidance, with non-GAAP EPS up 35% and trailing 12-month FCF surpassing $10B.Read full analysisCollapse analysis
Uber delivered a record Q2 with bookings and profitability exceeding expectations, driven by broad-based momentum across mobility and delivery. The company is aggressively expanding its autonomous vehicle ecosystem through strategic partnerships and substantial investments in physical AI infrastructure, while also consummating a major acquisition of Delivery Hero to enhance its global footprint. Total gross bookings grew 22% YoY to $58B+, exceeding guidance, with non-GAAP EPS up 35% and trailing 12-month FCF surpassing $10B.
Uber announced a significant acquisition of Delivery Hero, expected to close in H2 2027, and is integrating a ubiquitous AV strategy with 120,000 vehicle commitments.
US mobility growth is accelerating, fueled by insurance tailwinds, product innovations like Wait & Save and U4B, and expansion in sparse markets.
Competition intensity in Brazil has increased significantly, particularly in two-wheeler supply from Didi and Meituan, posing cost pressures.
Revenue$14.191B
+7% QoQ
EPS$0.81
+13% QoQ
Gross margin44.93%
reported
Op margin14.64%
reported
What changed this quarter
01
Margins
Uber to be profitable on AV operating income margin
Reported gross margin was 44.93%, reinforcing the quarter's better-than-guided profitability.
02
AV
AV investments to have P&L impact at scale
Total gross bookings grew 22% YoY to $58B+, exceeding guidance, with non-GAAP EPS up 35% and trailing 12-month FCF surpassing $10B.
03
Demand
U.S. mobility growth accelerated in Q2
Demand signals are strong: Q2 growth bookings up 22% YoY, fourth consecutive quarter above 20%; record first-time user momentum; U.S. mobility acceleration driven by insurance tailwinds, product innovation, and sparse market expansion; delivery showing organic acceleration…
04
AI
AI coding tools double engineer output
Management views AI as a broad productivity and product lever, citing 100% adoption of AI coding tools, doubled code output for engineers, and AI-driven features like Cart Builder doubling cart size. The CEO expects AI to contribute through many small improvements rather than a…
AI, capex & demand read
AI
Platform & monetization
Management views AI as a broad productivity and product lever, citing 100% adoption of AI coding tools, doubled code output for engineers, and AI-driven features like Cart Builder doubling cart size. The CEO expects AI to contribute through many small improvements rather than a single blockbuster, improving conversion, personalization, and operational efficiency.
Demand
Bookings & conversion
Demand signals are strong: Q2 growth bookings up 22% YoY, fourth consecutive quarter above 20%; record first-time user momentum; U.S. mobility acceleration driven by insurance tailwinds, product innovation, and sparse market expansion; delivery showing organic acceleration, with category position gains in all large markets. Management expects U.S. mobility to continue accelerating through the year
Capex
Investment and capacity
Management highlighted $10 billion in autonomous vehicle (AV) investments over multiple years, split between equity investments in AV software partners and balance sheet support for fleet ops, real estate, and OEM off-take commitments. These investments are designed to catalyze the AV ecosystem, with third-party financial sponsors expected to help finance deployment. No traditional capex guidance
Tone · Confident
Management expressed confidence in sustained growth and strategic positioning, citing record results, strong forward-looking momentum, and a clear AV commercialization strategy despite competitive and regulatory headwinds.
Supply-chain alpha
A1
Uber's $10B AV investment includes equity stakes with a leverage effect where partners have raised an additional $2.5 for every $1 Uber invested.
“And the additional benefit for our partners is that our anchor role helps capitalize and many more external fundraising for those partners as well. And so far for every dollar that we have invested, our partners have been able to raise an…”
“people estimate that 20% of search now has gone to AI. 40% of users are using AI search of one way or the other. So the penetration of physical AV is going to be slower.”
Uber is seeing increased competition in Brazil from Didi and Meituan specifically for two-wheeler supply, which is raising costs and impacting mobility trip volumes.
“Didi's introduced Didi Food. Meituan has gone in there going against iFood, which is the incumbent in Brazil as well. All of them are growing after two-wheeler delivery supply.”
Uber's headcount growth is being moderated by AI-induced productivity gains, notably a doubling in code output for engineers using AI tools.
“we are seeing near 100% adoption with our engineers on AI-based coding tools. And for the measurement that we are looking at right now, we are seeing doubling in the code output for engineers.”
Uber notes that AV penetration is far below that of AI in search, showing a longer adoption curve in mobility. — Suggests a slower ramp for AV revenue for Uber but also a longer runway for its competitive advantage in the market.
“we've seen NVIDIA release its Alpha Mayo open weight model”
… service to how broadly, reliably, and economically it can scale. That distinction matters because we believe the industry structure is becoming clearer. It mirrors what's happening in AI broadly. A few years ago, many expected AI to converge around a single foundation model. Instead, multiple frontier models have emerged alongside a growing open source ecosystem. We believe ADs, which are essentially physical AI, will follow a similar path. Just in the last week, we've seen NVIDIA release its Alpha Mayo open weight model, and our partners at Wave received a permit in the UK, and Zoox received approval to scale its rolo taxi. The momentum across our partner base is remarkable. Unlike foundation models, however, AVs are physical, regulated systems that have to be deployed market by market with the variable patterns of ride hailing. That makes the commercialization layer critical, and that's exactly the opportunity we're building towards. Our ambition is straightforward, to become the world's leading commercialization platform for autonomous vehicles. Taken together, we're executing with discipline today while building the capabilities we believe will define Uber's next …
… can scale. That distinction matters because we believe the industry structure is becoming clearer. It mirrors what's happening in AI broadly. A few years ago, many expected AI to converge around a single foundation model. Instead, multiple frontier models have emerged alongside a growing open source ecosystem. We believe ADs, which are essentially physical AI, will follow a similar path. Just in the last week, we've seen NVIDIA release its Alpha Mayo open weight model, and our partners at Wave received a permit in the UK, and Zoox received approval to scale its rolo taxi. The momentum across our partner base is remarkable. Unlike foundation models, however, AVs are physical, regulated systems that have to be deployed market by market with the variable patterns of ride hailing. That makes the commercialization layer critical, and that's exactly the opportunity we're building towards. Our ambition is straightforward, to become the world's leading commercialization platform for autonomous vehicles. Taken together, we're executing with discipline today while building the capabilities we believe will define Uber's next decade of growth. With that operator, let's open up for questions.
Rivian is positioned as a key AV OEM partner for Uber's future fleet, providing a potential new revenue stream and showcasing Uber's influence over EV adoption.
“We expect to see Rivian in the market and these are, you know, this is kind of a full stack kind of a build, which is software and hardware with a very affordable bill of materials.”
Thanks for taking my questions. Maybe, Dara, a double-pronged one on autonomous, one on mobility and delivery. You've made a lot of progress with different partnerships, and there's a lot of technological progress happening, but maybe help us understand, if you look ahead 12 months from now, what are sort of the main milestones or progress signpoints you're focused on on your mobility strategy and your delivery strategy in AV just to ensure you're going down the right path?
Yeah, absolutely, Brian. So in terms of what the milestones we're looking at, the most important milestones are really launches and the number of cities that we are live in, both with vehicle operators and then without vehicle operators. So to remind you, we're live in seven cities and we're on track to be live in 15 cities by year end. We've got a Neuralucid launch coming in the Bay. We've got Zeus coming in Vegas. We've got Wave in London and Tokyo, Baidu also in London, and then Pony and Vern in Zagreb and potentially more. So there's a bunch of launches coming up in the balance of the year. And then really we're looking for more in 2027. So we'll continue to launch markets with the partners that I talked about. but we'll be adding additional partners into the ecosystem as well. We expect to see Rivian in the market and these are, you know, this is kind of a full stack kind of a build, which is software and hardware with a very affordable bill of materials. We expect to be in perhaps San Francisco and Miami in 2028 for Rivian and then in NVIDIA, We expect to be in LA and San Francisco in 2027, and then 28 different cities globally by 28 as well. So really what we're looking for is launches in markets, accelerating our data collect, which is really driving the newer kind of end-to-end models as well, and then starting to really commercialize this model. The numbers are small at this point, but for us, what we're looking at is, first of all, the quality of the service. and then second, the utilization of these vehicles. And what we've seen is that launching with us as a partner with kind of the built in kind of demand that we've got, we can drive very significant utilization per vehicle, often mid to high 20s, low 30s in terms of trips per vehicle per day, which is quite substantial in terms of the needed monetization as it relates to these vehicles. It's getting partners in market, quality of service, and then obviously the economics of the service that we're looking at. On the delivery side, we're also partnered with a number of partners, whether it's CERT or Karkin, for delivery kind of sidewalk robots. What I am increasingly optimistic about are the potential with drones. So we've got For example, partnerships with Flytrex. There are a number of partnerships coming up in the drone area. And the promise of drones, while it will take time to get the …
FLYTREX
Private company
Partners
Uber's partnership with Flytrex highlights its expansion into drone delivery, signaling a move towards more time-efficient logistics that could disrupt traditional delivery models.
Thanks for taking my questions. Maybe, Dara, a double-pronged one on autonomous, one on mobility and delivery. You've made a lot of progress with different partnerships, and there's a lot of technological progress happening, but maybe help us understand, if you look ahead 12 months from now, what are sort of the main milestones or progress signpoints you're focused on on your mobility strategy and your delivery strategy in AV just to ensure you're going down the right path?
… that I talked about. but we'll be adding additional partners into the ecosystem as well. We expect to see Rivian in the market and these are, you know, this is kind of a full stack kind of a build, which is software and hardware with a very affordable bill of materials. We expect to be in perhaps San Francisco and Miami in 2028 for Rivian and then in NVIDIA, We expect to be in LA and San Francisco in 2027, and then 28 different cities globally by 28 as well. So really what we're looking for is launches in markets, accelerating our data collect, which is really driving the newer kind of end-to-end models as well, and then starting to really commercialize this model. The numbers are small at this point, but for us, what we're looking at is, first of all, the quality of the service. and then second, the utilization of these vehicles. And what we've seen is that launching with us as a partner with kind of the built in kind of demand that we've got, we can drive very significant utilization per vehicle, often mid to high 20s, low 30s in terms of trips per vehicle per day, which is quite substantial in terms of the needed monetization as it relates to these vehicles. It's getting partners in market, quality of service, and then obviously the economics of the service that we're looking at. On the delivery side, we're also partnered with a number of partners, whether it's CERT or Karkin, for delivery kind of sidewalk robots. What I am increasingly optimistic about are the potential with drones. So we've got For example, partnerships with Flytrex. There are a number of partnerships coming up in the drone area. And the promise of drones, while it will take time to get the economics down to kind of the kind of economics that can be sustainable, with drone delivery, you know, with AVs, it's a really cool experience. It's safe, et cetera. But AVs to some extent are slower than human drivers at this point. We'll see what happens there. Drone delivery can cut the timing of delivery significantly. So already kind of ordering dinner and getting it delivered to your home in 30 minutes is a magical experience. We think in 15 minutes, it's going to be 10 to 15 minutes is going to be an even more magical experience. So while we're on the sidewalks now as it relates to our delivery business, we're looking forward to getting in the air with some of the partners out there.
Thanks for taking my questions. Maybe, Dara, a double-pronged one on autonomous, one on mobility and delivery. You've made a lot of progress with different partnerships, and there's a lot of technological progress happening, but maybe help us understand, if you look ahead 12 months from now, what are sort of the main milestones or progress signpoints you're focused on on your mobility strategy and your delivery strategy in AV just to ensure you're going down the right path?
Yeah, absolutely, Brian. So in terms of what the milestones we're looking at, the most important milestones are really launches and the number of cities that we are live in, both with vehicle operators and then without vehicle operators. So to remind you, we're live in seven cities and we're on track to be live in 15 cities by year end. We've got a Neuralucid launch coming in the Bay. We've got Zeus coming in Vegas. We've got Wave in London and Tokyo, Baidu also in London, and then Pony and Vern in Zagreb and potentially more. So there's a bunch of launches coming up in the balance of the year. And then really we're looking for more in 2027. So we'll continue to launch markets with the partners that I talked about. but we'll be adding additional partners into the ecosystem as well. We expect to see Rivian in the market and these are, you know, this is kind of a full stack kind of a build, which is software and hardware with a very affordable bill of materials. We expect to be in perhaps San Francisco and Miami in 2028 for Rivian and then in NVIDIA, We expect to be in LA and San Francisco in 2027, and then 28 different cities globally by 28 as well. So really what we're looking for is launches in markets, accelerating our data collect, which is really driving the newer kind of end-to-end models as well, and then starting to really commercialize this model. The numbers are small at this point, but for us, what we're looking at is, first of all, the quality of the service. and then second, the utilization of these vehicles. And what we've seen is that launching with us as a partner with kind of the built in kind of demand that we've got, we can drive very significant utilization per vehicle, often mid to high 20s, low 30s in terms of trips per vehicle per day, which is quite substantial in terms of the needed monetization as it relates to these vehicles. It's getting partners in market, quality of service, and then obviously the economics of the service that we're looking at. On the delivery side, we're also partnered with a number of partners, whether it's CERT or Karkin, for delivery kind of sidewalk robots. What I am increasingly optimistic about are the potential with drones. So we've got For example, partnerships with Flytrex. There are a number of partnerships coming up in the drone area. And the promise of drones, while it will take time to get the …
Pony.ai's partnership with Uber is further diversifying Uber's AV supply chain, reducing its dependency on any single technology provider and expanding its market reach.
Thanks for taking my questions. Maybe, Dara, a double-pronged one on autonomous, one on mobility and delivery. You've made a lot of progress with different partnerships, and there's a lot of technological progress happening, but maybe help us understand, if you look ahead 12 months from now, what are sort of the main milestones or progress signpoints you're focused on on your mobility strategy and your delivery strategy in AV just to ensure you're going down the right path?
Yeah, absolutely, Brian. So in terms of what the milestones we're looking at, the most important milestones are really launches and the number of cities that we are live in, both with vehicle operators and then without vehicle operators. So to remind you, we're live in seven cities and we're on track to be live in 15 cities by year end. We've got a Neuralucid launch coming in the Bay. We've got Zeus coming in Vegas. We've got Wave in London and Tokyo, Baidu also in London, and then Pony and Vern in Zagreb and potentially more. So there's a bunch of launches coming up in the balance of the year. And then really we're looking for more in 2027. So we'll continue to launch markets with the partners that I talked about. but we'll be adding additional partners into the ecosystem as well. We expect to see Rivian in the market and these are, you know, this is kind of a full stack kind of a build, which is software and hardware with a very affordable bill of materials. We expect to be in perhaps San Francisco and Miami in 2028 for Rivian and then in NVIDIA, We expect to be in LA and San Francisco in 2027, and then 28 different cities globally by 28 as well. So really what we're looking for is launches in markets, accelerating our data collect, which is really driving the newer kind of end-to-end models as well, and then starting to really commercialize this model. The numbers are small at this point, but for us, what we're looking at is, first of all, the quality of the service. and then second, the utilization of these vehicles. And what we've seen is that launching with us as a partner with kind of the built in kind of demand that we've got, we can drive very significant utilization per vehicle, often mid to high 20s, low 30s in terms of trips per vehicle per day, which is quite substantial in terms of the needed monetization as it relates to these vehicles. It's getting partners in market, quality of service, and then obviously the economics of the service that we're looking at. On the delivery side, we're also partnered with a number of partners, whether it's CERT or Karkin, for delivery kind of sidewalk robots. What I am increasingly optimistic about are the potential with drones. So we've got For example, partnerships with Flytrex. There are a number of partnerships coming up in the drone area. And the promise of drones, while it will take time to get the …
Uber notes that AV penetration is far below that of AI in search, showing a longer adoption curve in mobility. — Suggests a slower ramp for AV revenue for Uber but also a longer runway for its competitive advantage in the market.
Great. Thanks for taking the questions. I have two. You highlighted some softness in Brazil mobility trips. Could you just talk about the competitive environment there and then also if there are any other markets where you need to invest in Moto and low-cost mobility products? And then secondly, there's been a lot in the press recently regarding Uber's relationship with Waymo. Is there anything you can add or clarify there and specifically how you're thinking about those Austin and Atlanta partnerships? Thank you.
… delivery supply will switch off between delivering food and also moving people as well. So the cost of securing that supply has gone up pretty significantly. And we're moving incentives that we kind of put on the consumer side, we're moving it to the delivery side to counteract that, if you will. The good news as it relates to Brazil is that we continue to hold our share in Brazil but you just see kind of share move from the mobility side of the business to the delivery side of the business because it's a period of time where there's a lot of investment going there. I think the good news, if you want to call that, is our two-wheeler business is one of our newer businesses. The margins in that business are quite low, so it's certainly not hitting the bottom line, but it is affecting trip volumes and it's actually competition outside of our space. that is affecting those trip volumes. As it relates to Waymo, listen, Waymo is a very, very important partner of ours and we continue to operate in Austin and Atlanta. We believe we'll continue to operate next year in those marketplaces. It's a terrific product and the on-the-ground partnership continues to be very strong. At the same time, we want to make sure that we're not dependent on one partner. and we're absolutely seeing a plethora of newer players in the AV ecosystem, just like you see in the foundation model space. And while we continue to provide a great service with Waymo in Austin, Atlanta, we'll continue to build our services with our other players as well. We'll be in 15 markets by the end of the year. Next year, it'll be many, many more markets than that. and, you know, just as a reminder of our scale, you know, AVs are doing kind of hundreds of thousands of trips per week. We're at 300 million kind of trips per week as well. So it's even, you know, less than 0.5% of our overall trip volume. You know, you compare that again to the foundation model space, you know, people estimate that 20% of search now has gone to AI. 40% of users are using AI search of one way or the other. So the penetration of kind of physical AV is going to be slower. It's going to some extent be more deliberate. It's way below where it is at AI. Regulations are a consideration there. And, you know, we have time to develop the partnerships with our other set of partners to create a competitive playing field with …
Uber is seeing increased competition in Brazil from Didi and Meituan specifically for two-wheeler supply, which is raising costs and impacting mobility trip volumes. — This competitive pressure on supply could lead to margin compression and a slower growth rate in one of Uber's largest markets, affecting overall financial performance.
Great. Thanks for taking the questions. I have two. You highlighted some softness in Brazil mobility trips. Could you just talk about the competitive environment there and then also if there are any other markets where you need to invest in Moto and low-cost mobility products? And then secondly, there's been a lot in the press recently regarding Uber's relationship with Waymo. Is there anything you can add or clarify there and specifically how you're thinking about those Austin and Atlanta partnerships? Thank you.
Yeah, absolutely, Doug. So in Brazil, we are seeing a competitive environment. Now, it's always been competitive as it relates to mobility. We compete against TD, for example, locally. And Latin America generally has been quite competitive. What we're seeing that's new and different in Brazil is there is an enormous amount of competition as it relates to the food business. Didi's introduced Didi Food. Meituan has gone in there going against iFood, which is the incumbent in Brazil as well. All of them are growing after two-wheeler delivery supply. And that same two-wheeler delivery supply will switch off between delivering food and also moving people as well. So the cost of securing that supply has gone up pretty significantly. And we're moving incentives that we kind of put on the consumer side, we're moving it to the delivery side to counteract that, if you will. The good news as it relates to Brazil is that we continue to hold our share in Brazil but you just see kind of share move from the mobility side of the business to the delivery side of the business because it's a period of time where there's a lot of investment going there. I think the good news, if you want to call that, is our two-wheeler business is one of our newer businesses. The margins in that business are quite low, so it's certainly not hitting the bottom line, but it is affecting trip volumes and it's actually competition outside of our space. that is affecting those trip volumes. As it relates to Waymo, listen, Waymo is a very, very important partner of ours and we continue to operate in Austin and Atlanta. We believe we'll continue to operate next year in those marketplaces. It's a terrific product and the on-the-ground partnership continues to be very strong. At the same time, we want to make sure that we're not dependent on one partner. and we're absolutely seeing a plethora of newer players in the AV ecosystem, just like you see in the foundation model space. And while we continue to provide a great service with Waymo in Austin, Atlanta, we'll continue to build our services with our other players as well. We'll be in 15 markets by the end of the year. Next year, it'll be many, many more markets than that. and, you know, just as a reminder of our scale, you know, AVs are doing kind of hundreds of thousands of trips per week. We're at 300 million kind of trips per week as well. So …
… than $58 billion, above the high end of our guidance and marking our fourth consecutive quarter above 20% growth. Just as importantly, that growth translated into significant operating leverage with non-GAAP EPS growing 35% year-over-year, and trailing 12-month free cash flow exceeding $10 billion for the first time in our history. Those results give us the ability to continue investing from a position of strength across our priorities. A recently announced agreement to acquire Delivery Hero is a great example. The combination is going to expand our reach to nearly 100 markets and extend the proven strategy that has underpinned our growth for years by roughly doubling the number of markets where we can offer the full power of our platform across mobility and delivery. By bringing our technology and Uber One to millions more people, we believe this deal will create significant long-term shareholder value. We also continue to invest behind one of the largest opportunities in Uber's history, autonomous vehicles. Over the past year, the conversation around AVs has shifted. from whether the technology can deliver a compelling service to how broadly, reliably, and economically it can …
Uber is seeing increased competition in Brazil from Didi and Meituan specifically for two-wheeler supply, which is raising costs and impacting mobility trip volumes. — This competitive pressure on supply could lead to margin compression and a slower growth rate in one of Uber's largest markets, affecting overall financial performance.
Great. Thanks for taking the questions. I have two. You highlighted some softness in Brazil mobility trips. Could you just talk about the competitive environment there and then also if there are any other markets where you need to invest in Moto and low-cost mobility products? And then secondly, there's been a lot in the press recently regarding Uber's relationship with Waymo. Is there anything you can add or clarify there and specifically how you're thinking about those Austin and Atlanta partnerships? Thank you.
Yeah, absolutely, Doug. So in Brazil, we are seeing a competitive environment. Now, it's always been competitive as it relates to mobility. We compete against TD, for example, locally. And Latin America generally has been quite competitive. What we're seeing that's new and different in Brazil is there is an enormous amount of competition as it relates to the food business. Didi's introduced Didi Food. Meituan has gone in there going against iFood, which is the incumbent in Brazil as well. All of them are growing after two-wheeler delivery supply. And that same two-wheeler delivery supply will switch off between delivering food and also moving people as well. So the cost of securing that supply has gone up pretty significantly. And we're moving incentives that we kind of put on the consumer side, we're moving it to the delivery side to counteract that, if you will. The good news as it relates to Brazil is that we continue to hold our share in Brazil but you just see kind of share move from the mobility side of the business to the delivery side of the business because it's a period of time where there's a lot of investment going there. I think the good news, if you want to call that, is our two-wheeler business is one of our newer businesses. The margins in that business are quite low, so it's certainly not hitting the bottom line, but it is affecting trip volumes and it's actually competition outside of our space. that is affecting those trip volumes. As it relates to Waymo, listen, Waymo is a very, very important partner of ours and we continue to operate in Austin and Atlanta. We believe we'll continue to operate next year in those marketplaces. It's a terrific product and the on-the-ground partnership continues to be very strong. At the same time, we want to make sure that we're not dependent on one partner. and we're absolutely seeing a plethora of newer players in the AV ecosystem, just like you see in the foundation model space. And while we continue to provide a great service with Waymo in Austin, Atlanta, we'll continue to build our services with our other players as well. We'll be in 15 markets by the end of the year. Next year, it'll be many, many more markets than that. and, you know, just as a reminder of our scale, you know, AVs are doing kind of hundreds of thousands of trips per week. We're at 300 million kind of trips per week as well. So …
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