Uber Technologies (NYSE:UBER) said second-quarter gross bookings rose 22% year over year to more than $58 billion, exceeding the high end of its guidance range and marking its fourth consecutive quarter of growth above 20%. Chief Executive Officer Dara Khosrowshahi said the company also produced 35% growth in non-GAAP earnings per share and surpassed $10 billion in trailing 12-month free cash flow for the first time.
Khosrowshahi said the results allow Uber to invest across its growth priorities, including autonomous vehicles, delivery expansion and product development. The company recently announced an agreement to acquire Delivery Hero, a transaction Uber expects will expand its reach to nearly 100 markets and roughly double the number of markets in which it can offer both mobility and delivery services.
Autonomous vehicle network expands
Upcoming launches include Nuro and Lucid in the San Francisco Bay Area, Zoox in Las Vegas, Wayve in London and Tokyo, Baidu in London, and Pony and Verne in Zagreb, according to Khosrowshahi. He added that Uber expects Rivian to potentially enter San Francisco and Miami in 2028, while NVIDIA is expected to be operating in Los Angeles and San Francisco in 2027 and in 28 cities globally by 2028.
The CEO said Uber evaluates autonomous vehicle operations based on service quality, vehicle utilization and economics. He said Uber’s demand network has supported utilization in the mid-to-high 20s and low 30s in trips per vehicle per day for certain autonomous vehicle partners.
Uber also outlined a multiyear plan to invest approximately $10 billion in the autonomous vehicle ecosystem. Chief Financial Officer Balaji Krishnamurthy said the investments include equity investments in autonomous-vehicle software partners and selective balance-sheet support for fleet operations, real estate and original equipment manufacturers. Uber has discussed commitments involving 120,000 vehicles over the next several years, he said.
Krishnamurthy said that for every dollar Uber has invested in partners so far, those partners have raised an additional $2.50 from other investors. He said Uber would provide more detail on the income-statement and cash-flow effects of its autonomous vehicle investments as deployments move closer to scale.
Uber is also creating AV Labs to collect high-fidelity, rideshare-specific data using hundreds of vehicles equipped with robotaxi-grade sensors. Khosrowshahi said the data could help multiple partners train end-to-end autonomous driving models, rather than requiring each company to collect its own separate data set.
U.S. mobility growth supported by insurance, products and sparse markets
Krishnamurthy said U.S. mobility trips and gross bookings accelerated during the second quarter. While the World Cup provided a benefit, he said the broader momentum was driven by insurance savings, product innovation and expansion in less densely populated markets.
Uber is reinvesting insurance savings into the marketplace, particularly in California. Krishnamurthy said trip growth in Los Angeles and San Francisco meaningfully outpaced the rest of the country. He also cited traction for premium and lower-cost products, including Uber Reserve, Uber Premium, Uber Black and Wait & Save. Uber Premium grew 40% year over year, while Uber Health grew faster, he said.
Sparse markets remain a significant long-term opportunity, according to the CFO. Less than 10% of eligible consumers in those markets have used Uber in the past 12 months, compared with more than 50% in dense markets. Uber is investing in supply, reliability and marketing to increase awareness and trial in those areas.
Khosrowshahi said lower-cost offerings, cross-platform adoption and newer products are contributing to first-time user growth. Only 20% of Uber consumers use both Rides and Eats, he said, though cross-platform users are growing 1.5 times faster than single-product users. Products including Women Preferences and Uber Teens are also attracting new riders and drivers, he added.
Brazil competition and take-rate effects
Uber reported softness in Brazil mobility trips amid increased competition for two-wheeler supply. Khosrowshahi said food-delivery competitors, including DiDi Food and Meituan, are competing for the same two-wheeler drivers who can alternate between food delivery and passenger transportation.
Uber has shifted incentives toward the supply side to counter higher costs for securing those drivers. Khosrowshahi said Uber has maintained its share in Brazil, while some activity has shifted from mobility toward delivery. He added that the company’s two-wheeler business is relatively new and has low margins, meaning the competitive pressure is affecting trip volumes but not materially affecting the bottom line.
Krishnamurthy said mobility revenue margin declined nearly 500 basis points year over year, with about 400 basis points attributable to a U.K. business-model change that moved costs into cost of revenue. The remaining movement reflected deliberate investments in lower-cost products, Moto and Brazil. He said Uber’s mobility operating-income margin remained 7.6%, while the company’s net take rate disclosed in its 10-Q filing was broadly stable.
Delivery integration and capital allocation
Uber expects to close its Delivery Hero acquisition in the second half of 2027, subject to the transaction timeline discussed on the call. Krishnamurthy said the company expects to spend 2028 on planning and development, with primary technology migrations anticipated in 2029. Uber intends to move Delivery Hero operations onto its global technology platform and expects synergies from common technology, infrastructure, overlapping roles, shared services, payments and cloud infrastructure.
In delivery, Uber expects reported third-quarter growth to face a net acquisition-related headwind as it laps the larger Trendyol acquisition in Turkey. The company recently acquired Getir and is reconsolidating Careem, both of which will contribute to growth. Krishnamurthy said underlying organic delivery growth is accelerating in the U.S. and internationally, and Uber gained category position in all of its large markets.
Uber repurchased about $3.5 billion of stock during the first half of 2026. Krishnamurthy said the company shifted capital allocation toward merger and acquisition activity in the second quarter, deploying about $4 billion to acquire Delivery Hero shares. Uber historically has targeted using about 50% of free cash flow for buybacks and expects to rebuild repurchase activity over months rather than quarters, he said.
About Uber Technologies (NYSE:UBER)
Uber Technologies, Inc is a technology company that operates a global platform connecting riders, drivers, couriers, restaurants and shippers. Founded in 2009 by Garrett Camp and Travis Kalanick and headquartered in San Francisco, Uber developed one of the first large-scale ride-hailing marketplaces and has since expanded into a broader set of mobility and logistics services. The company completed its initial public offering in 2019 and continues to position its app-based network as a multi-modal transportation and delivery platform.
Uber’s principal businesses include mobility services (ride-hailing and shared rides), delivery through Uber Eats, and freight logistics via Uber Freight.
