Uber: 3 Key Takeaways for Long-Term Investors

Source Motley_fool

Key Points

  • Trailing 12-month free cash flow reached $10.4 billion.

  • Uber expects 700 fully driverless vehicles on its network by year-end.

  • Delivery gross bookings grew 23% year over year in the quarter.

  • 10 stocks we like better than Uber Technologies ›

On its third-quarter 2026 earnings call, held on Nov. 4, 2026, Uber (NYSE:UBER) reported $10.4 billion in trailing 12-month free cash flow, the cash left over after operating expenses and equipment purchases. That cash generation gives the ride-hailing and delivery platform the financial firepower to expand into autonomous transport while maintaining core profitability. Balancing driver supply constraints with aggressive tech investments will determine how effectively that cash converts into durable investor returns. Three things management said on the call stand out.

1. Autonomous Vehicles Will Rely on External Capital

Scaling autonomous vehicles (AVs), or self-driving cars, requires heavy hardware spending. Management plans to use third-party financing structures rather than draining internal cash to fund large vehicle fleets, with Uber anticipating 700 AVs on its network by year-end, and growing to 2,000 in 2027.

So our long-run expectation is that this should be financed by third party capital, not by Uber's balance sheet.
-- Balaji Krishnamurthy, Chief Financial Officer

2. Targeted Investments Are Addressing Driver Supply Deficits

Fuel cost inflation and shifting immigration dynamics restricted the supply of available drivers in key international ride-hailing markets like Brazil and India. Management reallocated marketplace incentives to restore driver capacity heading into the peak holiday season.

We are making targeted supply investments. So this is focused on driver acquisition, retention, and engagement. And as we go through that kind of investment, we are already encouraged with the early signs of supply that we saw in October, and supply hours growth globally accelerated in October.
-- Balaji Krishnamurthy, Chief Financial Officer

3. Buyouts Pause to Focus on Integrating Recent Deals

Following recent expansion agreements, management is pulling back on mergers and acquisitions (M&A), or corporate buyouts, to integrate existing platforms. Capital allocation will prioritize organic growth, AV expansion, and share buybacks, or the repurchasing of company stock.

And then there is M&A and buybacks as well, and we have plenty of capital for both. We are going to shift to, I would say, more of the top 2, and we are going to pull back on M&A.
-- Dara Khosrowshahi, Chief Executive Officer

Looking Ahead

Platform engagement is climbing with 215 million monthly active users, representing a 14% year-over-year increase, and gross bookings growth remains steady. Network effects across mobility (Uber’s ride-hailing business) and food delivery drive consumer retention, while high vehicle utilization gives the platform a structural cost advantage over stand-alone autonomous fleets. Management is watching marketplace balance and driver availability.

And with approximately 55 million Uber One members, we are deepening consumer relationships across both mobility and delivery. Those direct consumer relationships are central to our approach to AI. We are using AI to make everyday transactions simpler, and discovery more personalized while selectively exploring new distribution channels that could bring incremental demand.
-- Dara Khosrowshahi, Chief Executive Officer

Operational execution across delivery and international ride-hailing provides the momentum needed to support long-term autonomous tech rollouts.

As we enter Q4, our priorities are clear. Improved mobility supply, build on deliveries momentum, and deliver against our AV milestones all while continuing to grow profitably.
-- Dara Khosrowshahi, Chief Executive Officer

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