Uber Technologies reported strong second-quarter fiscal 2026 results, with Gross Bookings growing 22% year-over-year to more than $58 billion. This performance exceeded the high end of guidance and marked the fourth consecutive quarter of growth above 20%. The company also achieved record cash generation, with trailing 12-month free cash flow exceeding $10 billion for the first time in its history.

Non-GAAP earnings per share (EPS) increased 35% year-over-year, reflecting significant operating leverage. CEO Dara Khosrowshahi highlighted that record audience engagement drove durable growth and expanding margins. The company announced an agreement to acquire Delivery Guru, a move expected to expand its reach to nearly 100 markets and double the number of locations offering both Mobility and Delivery services.

Autonomous Vehicle Strategy and Investments

Uber continues to position itself as the leading commercialization platform for autonomous vehicles (AVs). Khosrowshahi noted that the industry structure is clarifying, with multiple frontier models emerging rather than a single dominant foundation model. Uber is live in seven cities with AV partners and is on track to operate in 15 cities by year-end. Upcoming launches include Nuro in the Bay Area, Zoox in Las Vegas, and Wayve in London and Tokyo.

The company is investing approximately $10 billion over a multiyear period into the AV ecosystem. CFO Balaji Krishnamurthy explained that this investment includes equity stakes in software partners and balance sheet support for infrastructure. For every dollar Uber invests, partners have raised an additional $2.50 from other investors. AV trips currently account for less than 0.5% of overall trip volume, but utilization rates on Uber’s platform are high, often reaching mid-to-high 20s or low 30s trips per vehicle per day.

Mobility Growth Drivers and Market Dynamics

In the US, Mobility trips and Gross Bookings accelerated, driven by three key factors: insurance savings reinvested into the market, product innovation velocity, and expansion in sparse markets. Less than 10% of eligible consumers in sparse markets have used Uber in the past 12 months, compared to over 50% in dense markets, indicating significant room for growth.

First-time user momentum reached record levels, supported by lower-cost products like Wait & Save and cross-platform usage. Only 20% of consumers currently use both Rides and Eats, yet these users grow 1.5x faster than single-product users. In Brazil, competitive intensity increased due to DiDi Food and Meituan entering the delivery space, impacting two-wheeler supply costs. However, Uber maintained its market share, shifting incentives from consumers to delivery partners.

Operational Efficiency and AI Integration

Uber is leveraging artificial intelligence to moderate headcount additions and improve productivity. Engineers have seen near 100% adoption of AI-based coding tools, resulting in a doubling of code output per engineer. Surgical headcount reductions of 10-20% were implemented in specific organizations during the quarter. These efficiencies allow Uber to reinvest savings into marketplace growth while maintaining discipline.

AI is also enhancing consumer experiences, with features like Cart Builder increasing average order sizes by 2x. Personalized destination suggestions drive 75% of rides, reducing friction and improving conversion rates. On the capital allocation front, Uber deployed about $4 billion toward M&A in Q2, primarily for Delivery Hero stock purchases. The company plans to rebuild share repurchase levels in the coming months, targeting 50% of free cash flow for buybacks historically.

What the Numbers Show

A divergence exists between reported revenue take rates and net take rates. While mobility revenue margins declined nearly 500 bps YoY, approximately 400 bps of this decline was optical, resulting from a UK business model change that moved costs from contra cost of revenue. Excluding this, net take rates remained broadly stable. Furthermore, despite the optical decline in take rates, mobility operating income margin remained strong at 7.6%, indicating that underlying profitability was not eroded by the accounting shift.

Uber Technologies is set to deploy an estimated $12.9 billion across its pending acquisitions of Delivery Hero and ezCater, a move analysts project will lift pro forma bookings to $341 billion by 2027.

The combined deals add more than $66 billion to Uber’s annual bookings and are expected to increase the company’s revenue take-rate by over one percentage point. This strategic expansion consolidates Uber’s position in both global delivery and corporate catering.

Deal structure and financial impact

The acquisition of ezCater is structured as an all-cash transaction valued at $2.3 billion, expected to close in the coming months. Separately, Uber agreed in July to acquire the remaining shares of Delivery Hero for approximately $14.8 billion, with a closing timeline in the back half of 2027. Analyst Jake Fuller estimates Uber will deploy $10.6 billion specifically for the remaining Delivery Hero shares, bringing total uses for both deals to $12.9 billion.

Following these transactions, Uber is projected to hold $3.6 billion in cash and carry $21 billion in debt on a pro forma basis. The deals are expected to be margin accretive, with Fuller forecasting pro forma EBITDA to reach $16.6 billion at a margin of around 19%.

Strategic context and target metrics

EzCater operates as a digital marketplace connecting businesses with local catering providers. It generated more than $2.5 billion in Gross Bookings over the past 12 months, with year-over-year growth in the high teens. Its average order value tops $400, significantly higher than typical consumer delivery orders. EzCater is profitable on a non-GAAP operating income basis.

Uber CEO Dara Khosrowshahi stated, "Catering is a big business, and can be a huge revenue stream for restaurants. With Uber’s reach, we can bring that experience to millions more customers and help restaurants win more of these valuable orders."

Broader 2026 deal activity

This acquisition follows other major strategic moves by Uber in 2026:

• Delivery Hero SE: In July, Uber agreed to acquire Delivery Hero for about $14.8 billion in cash, expanding its delivery footprint across nearly 100 markets.
• Blacklane: In March, Uber acquired Blacklane to support Uber Elite, its premium mobility offering, and strengthen its presence in luxury chauffeur and airport-transfer services.
• Rivian Automotive: Uber committed up to $1.25 billion to a strategic partnership with Rivian to integrate customized electric robotaxis into its autonomous network through 2031.

What the numbers show

The combination of existing operations and new acquisitions creates a distinct divergence between booking growth and earnings accretion. While the deals add $66 billion to bookings, the estimated earnings accretion is approximately 5%, excluding incremental gains from divesting overlapping Delivery Hero markets. This suggests that while the top-line expansion is substantial, the immediate bottom-line impact is moderate relative to the capital deployed. The projected revenue increase to $87 billion alongside a $341 billion booking figure implies a stable or slightly improving take-rate efficiency as the portfolio scales.

Market reaction and outlook

Uber shares declined 1.09% to $68.33 at the time of publication on Wednesday. The stock remains below its major moving averages, including the 20-day SMA of $70.08 and the 200-day SMA of $74.63. Analysts expect EPS of 95 cents for the upcoming earnings report on November 4, up from 81 cents a year earlier, on revenue of $14.71 billion versus $13.47 billion. The stock carries a Buy consensus rating with an average price forecast of $103.74 across 39 analysts.