Uber Technologies Inc., under the leadership of CEO Dara Khosrowshahi, is actively working on expanding its robotaxi business while expecting positive results for Q3 2023.
Uber's Business Expansion Strategy
CEO Dara Khosrowshahi revealed that the company is engaged with private equity firms and banks to secure funding for its growing robotaxi business. Currently, Uber offers robotaxi rides in Austin and Atlanta in partnership with Waymo, the self-driving division of Alphabet Inc. Khosrowshahi outlined a multi-faceted strategy for expanding robotaxi operations through partnerships and internal investment. He emphasized that once reliable daily revenue from robotaxis is demonstrated, external financing will follow.
Q3 Forecasts and Positive Performance
Uber forecasts Q3 gross bookings to be between $48.25 billion and $49.75 billion, significantly above Wall Street’s $47.3 billion prediction. The second quarter was strong with gross bookings rising 18.2%, driven by a 24.6% growth in delivery and 18.8% in mobility. Khosrowshahi also noted user growth in the Uber One loyalty program, significantly impacting total bookings.
Uber's $20 Billion Stock Buyback
On Wednesday, Uber announced a $20 billion stock buyback program, following a $7 billion buyback authorization earlier in 2024. The success of the loyalty program and user growth have been key factors contributing to the company's positive direction. Membership in the Uber One paid program surged 60% year-over-year, reaching over 36 million users.
Uber Technologies Inc. is showcasing active growth and positive forecasts through new strategic initiatives and successful loyalty program implementations. The development of the robotaxi segment and stock buybacks is expected to enhance the company's financial performance in the long run.
