Uber has launched a $20 billion share buyback programme, one of the largest in technology sector history, while projecting stronger third-quarter bookings than Wall Street anticipated.
The company’s decision follows a record free cash flow of $8.5 billion in the past 12 months and builds on the $7 billion buyback authorisation announced earlier in 2024.
“This underscores our confidence in the business,” Chief Executive Dara Khosrowshahi said, positioning the company for sustained shareholder returns.
Uber’s performance in the second quarter was bolstered by its $9.99-a-month Uber One subscription service, which recorded a 60% year-on-year increase in membership to 36 million users.
More than one-third of total bookings now come from these members, who generate triple the profit of single-service customers by engaging across rides, food delivery, and grocery services.
The company’s targeted promotions are proving effective. A one-week discount campaign in May alone attracted 500,000 new members. Other initiatives, such as the $2.99-a-month “Price Lock Pass,” have also encouraged habitual use by offering fixed fares on selected routes in over 10 major cities across the US and Brazil.
Uber’s second-quarter gross bookings rose 18.2%, driven by a 24.6% jump in its delivery segment and 18.8% growth in mobility services. The company now expects third-quarter gross bookings between $48.25 billion and $49.75 billion, well above analysts’ average projection of $47.3 billion.
Adjusted core profit is forecast at $2.19 billion to $2.29 billion, with net income for the quarter at 63 cents per share, up from 47 cents a year ago.
While Uber does not manufacture autonomous vehicles, it is aggressively building partnerships in the self-driving sector, counting over 20 alliances with companies such as Lucid, Nuro, Waymo, WeRide, and Pony.ai. Plans include deploying 20,000 Lucid Gravity robotaxis from 2026 under a $300 million investment.
With the integration of routing, payments, and demand aggregation into partner fleets, Uber aims to remain the platform at the centre of the autonomous mobility market.
Shares dipped around 1.5% in pre-market trading on Wednesday, following initial volatility. However, Uber’s stock remains one of the S&P 500’s strongest performers this year, up 48% to date.
