Mirror Review
May 8th, 2025
The Uber Q1 2025 earnings, ending March 31, reveal strong financial results, reporting solid growth across its core Mobility and Delivery segments.
Uber also reports an increase in trips, user numbers, and a notable push into autonomous vehicle technology.
Moreover, despite falling slightly short of Wall Street’s revenue expectations, Uber’s profitability continues to climb.
Here are the key highlights of Uber’s Q1 2025 performance and what they mean for the company:
- Gross Bookings reached $42.8 billion, marking a 14% increase year-over-year (YoY), or 18% on a constant currency basis.
- Revenue grew to $11.5 billion, up 14% YoY (17% on a constant currency basis). Though this was slightly below Wall Street’s expectation of $11.62 billion.
- Trips increased by 18% YoY to 3.0 billion.
- Monthly Active Platform Consumers (MAPCs) grew by 14% YoY to 170 million.
- Income from Operations stood at an impressive $1.2 billion, a significant $1.1 billion increase YoY.
- Net Income (Attributable to Uber Technologies, Inc.) was $1.8 billion. This includes a $51 million net pre-tax benefit from revaluations of Uber’s equity investments. This translates to earnings per share of 83 cents, beating analysts’ expectation of 50 cents.
- Adjusted EBITDA saw a substantial 35% YoY growth, reaching $1.9 billion. The Adjusted EBITDA margin as a percentage of Gross Bookings was 4.4%, up from 3.7% in Q1 2024.
- Operating cash flow and free cash flow both came in at $2.3 billion.
- Unrestricted cash, cash equivalents, and short-term investments totaled $6.0 billion at the end of the first quarter.
Comments from the Top on Uber’s Q1 Performance
Uber CEO Dara Khosrowshahi positively commented, “We kicked off the year with yet another quarter of profitable growth at scale, with trips up 18% and even stronger user retention.”
He further stated the company’s strategic direction, saying, “Supported by the consistent strength of our core business, we continue to build towards the future, including five new autonomous vehicle announcements in just the last week.”
Khosrowshahi also highlighted that autonomous vehicle tech is “the single greatest opportunity ahead for Uber.”
Moreover, CFO Prashanth Mahendra-Rajah added, “We delivered over $2 billion of quarterly free cash flow, with multiple levers in our control to generate industry-leading cash flow growth.”
He further reiterated their financial strategy: “We remain focused on disciplined capital allocation to drive greater financial durability and are on track to deliver against our multiyear plan.”
10 Key Insights from Uber’s Q1 2025 Performance
- Consistent Growth in Core Segments:
Both Mobility and Delivery businesses showed strong gross bookings growth. Mobility bookings were $21.18 billion (up 13% YoY), and Delivery bookings reached $20.38 billion (up 15% YoY).
- User Engagement is Up:
Monthly trips per MAPC grew by 3% YoY, indicating users are relying on Uber’s services more frequently. Retention rates are also at or near all-time highs globally.
- Focus on Affordability and Market Expansion:
Uber continues to focus on making its platform more affordable and unlocking lower-density markets.
- Autonomous Vehicle (AV) Push:
Uber is significantly investing in its AV strategy, with Khosrowshahi calling it the “single greatest opportunity.” The company made five new AV announcements recently and reported an annual run-rate of 1.5 million autonomous vehicle trips. Their partnership with Waymo in Austin has “exceeded” expectations.
- Strong Driver and Courier Base:
A record 8.5 million active drivers and couriers earned $18.6 billion in the quarter, a YoY increase of 20% and 18% respectively.
- Expanding Merchant Network:
Merchant selection on the platform grew to 1.2 million (up 17% YoY), with merchant payouts increasing by 21% YoY to $12.9 billion.
- Advertising as a Growing Revenue Stream:
Advertising revenue crossed a $1.5 billion annual run-rate, growing over 60% YoY.
- Delivery Diversification:
Uber Eats is expanding beyond restaurants into Grocery & Retail (G&R), which is now at a $10 billion annualized Gross Bookings run-rate. Nearly a third of new Uber Eats customers came from the Uber app.
- Membership Driving Delivery Growth:
The Uber One membership program now drives 60% of Delivery Gross Bookings.
- Positive Outlook for Q2 2025:
For the second quarter of 2025, Uber expects Gross Bookings between $45.75 billion to $47.25 billion. Moreover, they expect Adjusted EBITDA of $2.02 billion to $2.12 billion.
The Road Ahead For Uber
Despite the strong performance, Uber’s $11.53 billion revenue slightly missed Wall Street’s expectation of $11.62 billion. Moreover, the company’s shares also saw a slight dip following the announcement.
Additionally, Uber is facing an FTC lawsuit regarding its Uber One subscription service, which Khosrowshahi addressed, stating the cancellation process is “very, very simple.”
Internally, recent changes to office work policies and sabbatical benefits have reportedly caused some discussion, though Khosrowshahi defended these as necessary for the company to be “at our top of our game.”
Conclusion
The Uber Q1 2025 earnings report shows a company moving forward with strong momentum. With steady growth in its core Mobility and Delivery segments, a rising user base, and ambitious developments in autonomous vehicles and advertising, Uber seems set for continued success. The Uber Q1 results highlight a clear focus on profitable growth, efficiency, and innovation. As the company explores new opportunities—like the planned acquisition of Trendyol GO in Türkiye—it will be interesting to see how these moves shape Uber’s future.
