Uber's marketing spend rises 22% to $1.56 billion

Uber Technologies increased its sales and marketing expenditure by 22.4% year-on-year to $1.56 billion in the third quarter ended September 30, 2026, compared with $1.28 billion in the corresponding quarter last year. The increase comes as the company invests in addressing supply-side constraints across key international markets, including India, where driver availability has struggled to keep pace with consumer demand.

The higher expenditure coincided with a 20% year-on-year increase in Gross Bookings to $59.8 billion, marking Uber's fifth consecutive quarter of growth above 20%. Revenue grew 10% to $14.77 billion from $13.47 billion in Q3 2025. On a constant currency basis, Gross Bookings and revenue also increased 20% and 10%, respectively.

However, changes in the company's business model negatively affected reported and constant currency revenue growth by eight percentage points. Total trips increased 16% to 4.1 billion during the quarter, supported by 14% growth in Monthly Active Platform Consumers (MAPCs) and a 2% increase in monthly trips per consumer.

India's driver supply situation emerged as a key operational challenge during the quarter. CEO Dara Khosrowshahi said consumer demand remained healthy across several international markets, but driver availability had not expanded at the same pace. In India, driver supply growth lagged demand, while elevated fuel costs further affected marketplace conditions. Brazil also remained undersupplied, although conditions improved modestly from the previous quarter. Canada faced similar constraints amid tighter immigration flows.

CFO Balaji Krishnamurthy said the impact of elevated fuel prices was particularly visible in emerging markets such as India and Brazil, where price sensitivity among both consumers and drivers influenced supply conditions.

To address the imbalance, Uber is directing investments towards driver acquisition, retention and reactivation, particularly in markets where demand exceeds available supply. Krishnamurthy said the company had already seen an acceleration in global supply hours growth in October, with notable improvements in India and Brazil.

Khosrowshahi said Uber was also adjusting its incentive allocation between riders and drivers. Compared with the previous year, the company has reduced rider incentives and redirected a larger share towards driver incentives. While this could translate into higher prices for consumers, Uber monitors the trade-off against profitability.

He further explained that the company's algorithmic systems assess the expected returns from deploying funds towards driver acquisition in one geography or rider incentives in another. These decisions draw on data from billions of trips to determine where investments can generate the highest returns.

Despite the pressure on supply, Uber's Mobility business recorded a 16% year-on-year increase in trips and 17% growth in Gross Bookings. However, revenue from the segment declined 2% to $7.52 billion in Q3 2026 from $7.68 billion in the year-ago quarter. Its operating income increased 27% to $2.36 billion from $1.86 billion, with the operating margin reaching a record 8%, according to Khosrowshahi.

The company attributed the moderation in Gross Bookings growth largely to supply constraints outside the US. While demand remained healthy, elevated fuel costs, tighter local labour conditions and competition for drivers affected supply availability.

The ongoing conflict in the Middle East also weighed on Mobility performance, creating a 75-basis-point headwind to Gross Bookings growth during Q3. Uber's Q4 outlook factors in an approximately 100-basis-point headwind due to subsequent escalations during the busy travel season. In the US, growth moderation was more limited, supported by continued benefits from insurance reforms. California, in particular, reported a meaningful acceleration in trip growth compared with the rest of the country.

Outside Mobility, Uber's Delivery business recorded revenue growth of 23% to $5.49 billion, compared with $4.48 billion in Q3 2025. Freight revenue increased 34% to $1.76 billion from $1.31 billion.

At the consolidated level, GAAP income from operations increased 30% to $1.4 billion, while non-GAAP operating income rose 38% to $2.3 billion. Adjusted EBITDA increased 31% to $3 billion, with its margin as a percentage of Gross Bookings improving to 5%, compared with 4.5% in Q3 2025.

Uber reported GAAP net income attributable to the company of $512 million, which included a pre-tax net loss of $476 million from the revaluation of its equity investments. GAAP diluted earnings per share stood at $0.25, while non-GAAP net income increased 29% to $1.8 billion and non-GAAP EPS rose 35% to $0.88.

Net cash generated from operating activities stood at $2.6 billion, while free cash flow was $2.5 billion during the quarter. The company ended September with $10.1 billion in unrestricted cash, cash equivalents and short-term investments.

For the fourth quarter of 2026, Uber expects Gross Bookings to reach between $63.25 billion and $65.25 billion, representing year-on-year growth of 18-22% on a constant currency basis. The outlook factors in an approximately one-percentage-point currency headwind to reported growth. The company expects non-GAAP EPS of 0.95-0.99, representing growth of 34-39% year-on-year, while Adjusted EBITDA is projected at 3.13billion-3.23 billion.

Khosrowshahi said Uber was investing in expanding Mobility supply and building on Delivery's momentum. He also said the company's focus on autonomous mobility was shifting towards commercial execution, with approximately 700 fully driverless vehicles expected on its platform by the end of 2026 and more than 2,000 in 2027.

Krishnamurthy said non-GAAP operating income margins had reached a record 3.9% of Gross Bookings, compared with 3.4% in Q3 2025. He added that Uber remained disciplined in capital allocation as it evaluated investments across its core businesses and autonomous mobility.

The CFO also highlighted the long-term growth opportunity across Uber's top 10 markets. Uber has doubled eligible population penetration in these markets over the past five years, but penetration remains at approximately 10%, indicating the scale of its addressable consumer base. For India, expanding driver availability and managing the impact of fuel costs on both sides of the marketplace remain immediate operational priorities.