Uber Technologies has reported strong revenue growth for the third quarter, but profits fell short of expectations after the company booked a $479 million legal and tax-related charge linked to ongoing regulatory cases. The results underline the financial strain of compliance disputes even as the company continues to expand globally.
Gross bookings rose 20% year on year to $49.7 billion, driven by steady demand across Uber’s ride-hailing and delivery services. Revenue climbed to $13.5 billion, exceeding forecasts and marking another record for the company. However, operating profit increased only 5% to $1.1 billion, below analyst estimates of around $1.6 billion, reflecting the impact of the legal provision.
The charge is understood to cover settlements and reserves related to investigations into worker classification and taxation issues across several jurisdictions. These ongoing legal matters continue to weigh on the company’s profitability despite its improved operational performance and growing market share.
Net income rose to $6.6 billion, buoyed by a one-off tax credit and investment gains, but analysts say underlying earnings remain constrained by regulatory costs and one-time items. The company’s leadership described its business momentum as “strong heading into the peak season,” citing expanding partnerships in autonomous driving and artificial intelligence as long-term growth priorities.
Uber’s situation highlights the legal complexities facing gig-economy firms navigating different labour laws worldwide. While its core operations continue to generate robust growth, the balance between compliance, profitability, and innovation remains a key challenge as regulators tighten scrutiny over employment practices and taxation.
