Uber shares slid after the company issued disappointing bookings guidance, even as CEO Dara Khosrowshahi laid out a $10 billion bet on autonomous vehicles. The ride-hailing giant's stock drop reflects investor unease over the high costs and competitive risks of pivoting to a robotaxi future.
The bookings miss
Uber's latest forecast for gross bookings fell short of Wall Street expectations. The company cited softer demand in some markets and ongoing pressure from rising insurance costs. The guidance overshadowed a quarterly profit that beat estimates, sending shares down more than 5% in after-hours trading.
A $10 billion robotaxi bet
Khosrowshahi is betting big on self-driving cars. The CEO announced plans to invest $10 billion into autonomous vehicle technology over the next several years. The move marks a strategic pivot for Uber, which previously sold off its own self-driving unit to Aurora Innovation in 2020. Now the company is back in the race, partnering with autonomous vehicle firms and planning to deploy robotaxis in multiple cities by 2026.
Investor skepticism
Not everyone is convinced. The $10 billion commitment comes with no guarantee of success. Competitors like Waymo and Tesla are already far ahead in testing and deployment. Uber's history with autonomous vehicles — including a fatal crash in 2018 and the subsequent sale of its unit — adds to the caution. Investors worry that the capital outlay could weigh on profits for years without a clear payoff.
The company's stock decline suggests the market is pricing in that risk. Uber's core ride-hailing and delivery businesses remain profitable, but the robotaxi investment could strain margins. Khosrowshahi has argued that Uber's massive network of drivers and riders gives it an edge in scaling autonomous services. Whether that advantage is enough to justify the price tag is the open question.
