The strategy: Uber sees a major opportunity to increase revenues by driving cross-platform engagement, as only 20% of its customers currently use both its mobility and delivery services.

• Increasing that share could provide significant benefits because customers who use both services have a 35% higher retention rate and spend about three times more than single-service users.
• To close that gap, Uber is leaning on its Uber One membership program—which 8% of US adults currently pay for—while also testing personalized, context-based offers that connect its two services. For example, the app might suggest a commuter en route to work to pre-order Starbucks via Uber Eats.

Zooming in on delivery: Uber’s delivery business accelerated in Q3, with bookings up 24% YoY on a constant-currency basis and revenues rising 27%.

The company’s global food delivery business boasts an $80 billion run rate, but Uber is looking for more. CEO Dara Khosrowshahi said on the Q3 earnings call that Uber aims to capture a greater share of the $2 trillion global food delivery market, as well as the much larger $10 trillion grocery and retail sector.

Its growth strategy focuses on three pillars:

• Broadening the merchant base by partnering with retailers like Aldi, Dollar General, Kroger, and Sephora.
• Integrating grocery and retail more deeply within its core apps to drive discovery and conversion.
• Investing heavily in marketing and technology to build awareness and engagement. For example, Uber recently launched “Fresh Days,” a weekly promotion offering customers up to 50% off fresh produce, meat, dairy, and other grocery items to strengthen its position as a go-to destination for grocery shopping.

Our take: Uber posted its strongest growth since late 2023, driven by the largest trip volume increase in its history outside the post-Covid rebound. The company expects gross bookings between $52.25 billion and $53.75 billion, above analyst estimates of $52.10 billion, and adjusted EBITDA of $2.41 billion to $2.51 billion, versus the $2.47 billion analysts projected.

Uber has largely weathered macro headwinds, suggesting that its customers remain willing to pay for convenience. If the company succeeds in deepening integration across its mobility and delivery platforms, it could unlock even faster growth in the coming quarters.