(Reuters) -Uber Technologies missed quarterly revenue estimates as growth in its ride-hailing unit slowed to its weakest since the pandemic, stirring fears of slowing demand against the backdrop of a murky economic outlook and clouding an upbeat forecast.
Shares of the company fell about 8% before clawing back some ground to be down 5% in premarket trading on Wednesday.
Total revenue rose 14% to $11.53 billion in the first quarter, compared with analysts’ expectations of $11.62 billion, according to data compiled by LSEG.
Uber has struggled to match the high growth from the post-pandemic quarters and is also contending with lower ride prices with some customers seeking cheaper transport options.
In February, Uber launched its Price Lock Pass, a $2.99 monthly subscription offering consistent fares on designated routes, to attract budget-conscious commuters, competing with a similar feature Lyft started offering last year.
In the reported quarter, revenue in Uber’s ride-hailing unit rose 15%. It increased about 18% in the delivery business, in line with Street expectations.
Uber expects gross bookings to be between $45.75 billion and $47.25 billion for the current quarter. This compared with Wall Street expectations of $45.83 billion.
The company anticipates a 1.5% currency-related drag on second-quarter gross bookings growth, with its Mobility segment facing a steeper 3% impact, as a stronger U.S. dollar reduces the value of earnings from international markets.
The company forecast second-quarter adjusted core earnings between $2.02 billion and $2.12 billion. Analysts were expecting $2.04 billion.
Profit in the first-quarter was 83 cents per share, surpassing analysts’ estimates of 50 cents.
Uber is intensifying its push into autonomous driving, deepening its partnership with Alphabet’s Waymo and forging new collaborations with robotaxi startups like WeRide, Pony AI and Avride.
Uber’s stock has soared roughly 42% this year, making it among the top 10 gainers in the benchmark S&P 500 index, while smaller rival Lyft is flat during the same period.
(Reporting by Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila)
