Now Reading: Uber Shares Fall After More Than $10 Billion Robotaxi Plan
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Uber Shares Fall After More Than $10 Billion Robotaxi Plan
Uber Shares Fall After More Than $10 Billion Robotaxi Plan
The Story in Brief
Uber shares fell 4.8% after the company forecast third-quarter adjusted earnings per share of $0.84 to $0.88. That was below analysts’ expectation of $0.89. Uber plans to spend more than $10 billion over coming years on robotaxi expansion, including equity investments, vehicle fleets and partner support. It aims to operate services in at least 15 cities this year.
Second-quarter gross bookings rose 24% year on year to $58.02 billion, while cash flow reached $2.8 billion. Revenue included a $1.1 billion accounting impact linked to UK law. Partners include Waymo, Zoox, Rivian, Lucid and Wayve. Investors remain concerned about the scale of the commitments.
The Indian Opinion
Uber’s bookings and cash flow offer some support for its robotaxi plans, but the spending could increase financial pressure and weaken its asset-light model. Claims that the plan will either transform transport or damage the company are premature. Its long-term profitability, partner performance and regulatory approvals remain uncertain. Investor caution appears understandable while these issues develop.
Source: hindustantimes.com
This story was synthesised by AI from the source linked above.
