Uber Falls Short of First-Quarter Expectations Following Its First Annual Profit Achievement

In 2023, Uber marked a significant milestone by finally turning a profit, which paved the way for its first fully profitable year in 2024. However, the company faced a setback in the first quarter of 2025, as earnings fell short of analysts’ expectations, leading to a brief decline in its stock price. Although Uber’s delivery segment is on the rise, this shortcoming raised concerns among investors, especially regarding the company’s growth prospects. From 2016 until its IPO in 2019, Uber reported staggering losses amounting to $10 billion.

The subsequent four years continued to challenge the ride-sharing giant, with profitability remaining elusive until the second quarter of 2023. The promising earnings trajectory seemed to stabilize, but recent results indicated that growth isn’t sustained across all segments. The decline in gross rideshare bookings, coupled with a noted decrease in revenue compared to the previous quarter, has raised eyebrows among investors. Analysts highlight that a decline in U.S. inbound travel contributed to the current dip.

Despite these fluctuations, year-on-year comparisons remain favorable, demonstrating that Uber’s long-term outlook is still bright. The company has taken strategic steps toward this future, including a collaboration with Waymo to develop autonomous taxis in Atlanta, which are now integrated within the Uber app. Additionally, Uber plans to launch robotaxis in 15 more cities worldwide. On the delivery front, Uber Eats maintained strong performance in early 2025, paralleling figures from the end of 2024, despite a slight downturn in rideshare transactions.

The delivery arm saw an 18% year-on-year growth, while the mobility segment reported a 20% increase, signaling a growing share of Uber’s overall business. Although there are concerns about the impact of external factors, including extreme weather and insurance costs, Uber continues to expand its global delivery service footprint. Early 2025 earnings revealed $42.8 billion in gross bookings and $11.5 billion in revenue, slightly below expectations. While Uber isn’t in danger, this margin is enough to cause investor anxiety in a climate of consumer spending uncertainty.