Updated Version 1 - Uber’s earnings forecast disappoints, driver shortages and Middle East conflicts impact results

Paragraph 3 adds share price information

Reuters, November 4 - Uber UBER.N on Wednesday forecast that its adjusted profit would be below Wall Street expectations, citing factors such as a shortage of drivers, rising fuel costs, and the Middle East conflict, all of which have weighed on its ride-hailing business growth from India and Brazil to Canada.

As a response, the company is increasing its investment in recruiting and retaining drivers, a cost that will be closely watched—especially as it continues to fund a major push into autonomous vehicles and a wave of acquisitions.

The ride-hailing company's shares fell nearly 2% in pre-market trading.

According to data compiled by London Stock Exchange Group (LSEG), Uber expects adjusted earnings per share in the fourth quarter to be between $0.95 and $0.99, below the market consensus of $1.06 per share.

The company said the Middle East conflict dragged down ride-booking growth by 75 basis points, and it expects a 100 basis point impact in the fourth quarter.

"Rising fuel prices and tight driver supply are constraining supply growth in several international markets," CEO Dara Khosrowshahi said in prepared remarks.

"We're also seeing that Canada has been impacted by a slowdown in immigration, and there is currently a significant supply shortage in that market."

Uber said that travel trends improved in October, and the company is increasing its investment in recruiting, retaining, and reactivating drivers.

The company expects total bookings to be between $63.25 billion and $65.25 billion, while analysts estimate $64.42 billion.

The company expects adjusted core profit to be between $3.13 billion and $3.23 billion, while analysts estimate $3.19 billion.

Third-quarter revenue was $14.77 billion, up 10% year-on-year. The growth rate was the slowest since the first quarter of 2021, but still exceeded the expected $14.69 billion. Delivery bookings grew by 22%, and freight grew by 35%.

Uber said that by the end of the year, it expects to have around 700 fully autonomous vehicles on its platform, and that number is expected to exceed 2,000 by the end of 2027. The company plans to concentrate investment into a small number of autonomous driving partners.

The company also agreed to acquire the food platform ezCater. In addition to its investments in autonomous driving, Uber expects "very little or no further M&A activity at least through 2027."

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