Uber Faces Slowest Revenue Growth Amid U.S. Travel Decline

San Francisco, CA – Uber‘s core ride-hailing business reported its slowest revenue growth since the pandemic, posting a 14% increase to $11.53 billion in the first quarter of 2025. This result was below analysts’ expectations of $11.62 billion, largely attributed to sluggish travel demand in the United States.

Executives expressed confidence in the company’s ability to navigate economic uncertainty with a positive forecast. CFO Prashanth Mahendra-Rajah said the company witnessed a “slightly higher mix of international trips” due to reduced inbound travel to the U.S.

Airbnb has also reported a decline in U.S. travel demand, highlighting how the government’s unpredictable trade policies are affecting consumer sentiment. Recent trade data showed foreign spending on U.S. travel in March fell sharply, the largest decline since the pandemic began.

Despite the challenges, Uber’s revenue from its ride-hailing unit grew by 15%, while its delivery services rose by 18%, aligning with market estimates. The company’s second-quarter projections for bookings and adjusted earnings outperform Wall Street expectations, indicating resilience from its international presence and robust delivery operations.

CEO Dara Khosrowshahi commented, “The categories we operate in … tend to be categories that are quite consistent, even during periods of macro uncertainty.” As a result, investor confidence remains strong, with Uber’s stock soaring approximately 42% this year, making it one of the top 10 performers on the S&P 500 index.

On Wednesday, Uber’s stock slightly decreased by about 1%, recovering from an earlier decline of more than 6% in morning trading. Additionally, the company announced plans to acquire an 85% stake in Turkish delivery platform Trendyol Go for $700 million.

Uber is also collaborating with Pony AI to integrate its autonomous vehicle technology into its ride-hailing platform. The company launched a robotaxi service in Austin, Texas, in partnership with Alphabet‘s Waymo, reporting high utilization rates and plans to expand the fleet.

For the current quarter, Uber anticipates gross bookings between $45.75 billion and $47.25 billion, with adjusted earnings between $2.02 billion and $2.12 billion. Analysts project adjusted earnings of approximately $2.04 billion.

Jamie Meyers, a senior analyst at Laffer Tengler Investments, downplayed the recent stock drop, stating, “We see the miss as immaterial, and as such, believe the stock will recover.”