Uber issued in-line earnings guidance while citing intensifying competition in Brazil as a drag on trip volume, raising fresh concerns about the company's growth trajectory amid the shift toward autonomous vehicles.
The ride-hailing giant reported bookings forecasts that met analyst expectations but fell short of delivering the upside investors have come to expect. CEO Dara Khosrowshahi acknowledged a notable slowdown in Brazil, where local food delivery operators have begun competing for rides.
Uber currently processes 300 million trips weekly globally, but the Brazil slowdown highlights vulnerability in one of its key markets. The admission compounds existing investor worries about Uber's ability to sustain growth as the industry transitions toward robotaxi services.
Brazil represents a significant portion of Uber's Latin American operations. The competitive pressure from regional players—particularly those leveraging existing delivery networks—suggests the company faces headwinds beyond macroeconomic factors.
The guidance and commentary underscore mounting pressure on Uber to demonstrate growth beyond traditional ride-sharing, even as autonomous vehicle technology remains years away from widespread deployment.
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