Uber shares down 4.8% on $10bn robotaxi plan for 15 cities

The Story in Brief

Uber shares fell 4.8% after the company forecast third‑quarter adjusted earnings per share of $0.84-$0.88, below the $0.89 analysts expected. The firm said it will spend more than $10 billion over coming years to expand its robotaxi business, largely through equity investments in autonomous‑driving companies, supporting vehicle fleets and helping partners meet vehicle commitments rather than primarily building Uber’s own self‑driving cars. Uber aims to operate robotaxi services in at least 15 cities this year and plans to leverage its more than 200 million customers to connect riders with robotaxi operators at scale.

Uber reported strong second‑quarter cash flow of $2.8 billion and gross bookings of $58.02 billion, up 24% year‑on‑year and above estimates, but a $1.1 billion accounting impact tied to UK law weighed on revenue. The company named partners including Waymo, Zoox, Rivian, Lucid and Wayve; Wayve received Transport for London permits for 15 modified Ford Mustang Mach‑Es and could begin supervised commercial rides in London within weeks. Uber gave broadly in‑line third‑quarter gross bookings and adjusted EBITDA guidance, while investors noted the size of its robotaxi commitments amid ongoing spending and strategic moves such as the Delivery Hero pursuit.

The Indian Opinion

Some coverage frames Uber’s announcement either as an all‑out bet that will remake transport or as reckless spending that will wreck the company. A measured reading shows both strengths and risks: Uber’s large customer base and recent strong cash flow support further investment, while the firm is shifting from an asset‑light model to one that takes on fleet and equity commitments. Investor concern about near‑term earnings and balance‑sheet pressure is understandable, given the scale of the pledge and a slightly softer EPS outlook. Facts about long‑term profitability, the success of multiple partnerships and regulatory approvals remain uncertain, so caution is warranted before calling the strategy a triumph or a failure.

Original article: Uber stock fall 4.8% as company plans $10 billion robotaxi push across 15 cities (www.hindustantimes.com)

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