Uber faces significant risks from driver classification lawsuits, potentially requiring employee treatment and substantial added costs. High competition in mobility, delivery, and freight sectors, with low switching costs, threatens profitability. Lowering fares and promotions may negatively impact financial performance. The company's substantial debt and dependence on third-party providers (including payment processors and data centers) pose liquidity and operational risks. Legal and regulatory risks, including ongoing investigations and potential fines, are substantial. Uncertainties in minority-owned entity performance and valuations add further risk. Economic downturns and catastrophic events could severely impact operations.
Financial Upside
Uber's revenue increased 20% in Q3 2024 and 17% in the first nine months of 2024, driven by increased Gross Bookings and Trip volumes, particularly in Mobility and Delivery. Adjusted EBITDA improved significantly in Q3 2024, and net income attributable to Uber Technologies, Inc. was $2.6 billion. Favorable unrealized gains on debt and equity securities, particularly in Aurora, Didi, and Delivery Hero investments, contributed to the positive Q3 2024 results.
