Uber Technologies Inc (NYSE:UBER) stock fell 0.25% (As on May 8, 11:21:14 AM UTC-4, Source: Google Finance) after the company reported first-quarter earnings that beat analyst estimates, but revenue fell short of expectations. Uber’s gross bookings grew 14% YoY to $42.8 billion, or 18% on a constant currency basis. The company saw trips increase 18% YoY to 3.0 billion, driven by a 14% growth in Monthly Active Platform Consumers. In the first three months of 2025, Uber users spent $21.18 billion on 3 billion trips. The company generated $6.49 billion in revenue from those transactions, or 15% more than a year earlier. The company’s strategy for maintaining this growth emphasizes markets where it has currently a limited number of drivers. In the longer term, Uber is looking to autonomous vehicles to boost its mobility business. Khosrowshahi disclosed that the company will start piloting autonomous vehicles from Volkswagen and two other partners this summer. Uber already provides access to Waymo taxis in some U.S. cities.

Further, the company’s second largest business, its delivery unit, grew sales 18% year-over-year, to $3.77 billion. Uber detailed that its Uber One membership program is driving 60% of delivery bookings. The program, which offers users access to discounts and other benefits in change for a monthly fee, is the focus of a new lawsuit from the U.S. Federal Trade Commission. Uber’s advertising service is also contributing to the growth of its delivery unit. The service, which enables businesses to promote their merchandise via the company’s apps, surpassed $1.5 billion in annualized recurring revenue during the first quarter. Uber says restaurants boosted their ad spending by 60%. To keep up the momentum, the company last month partnered with rival food delivery provider Instacart Inc. to connect the latter company’s advertising service with its own. The integration will make it easier for about 7,000 companies to advertise through Uber Ads.

UBER in the first quarter of FY25 has reported the adjusted earnings per share of 83 cents, beating the analysts’ estimates for the adjusted earnings per share of 51 cents. The same time a year earlier, Uber logged a $654 million loss because some of its investments had declined in value. The company had reported the adjusted revenue growth of 14 percent to $11.53 billion in the first quarter of FY25, missing the analysts’ estimates for revenue of $11.62 billion.

For the second quarter, Uber anticipates gross bookings between $45.75 billion and $47.25 billion, representing 16% to 20% YoY growth on a constant currency basis. The company expects adjusted EBITDA of $2.02 billion to $2.12 billion, a 29% to 35% YoY increase.