Uber Technologies's gross bookings grew at its slowest pace in over a year in a sign that riders were opting for less expensive public transportation over taxis, sending its shares down 5.7% in premarket trading.
The company also forecast current-quarter gross bookings, a key performance measure for app-based taxi services, slightly below estimates. Its adjusted core profit forecast for the period, however, was roughly in line with expectations.
Gross bookings for the third quarter rose 16.1% to $40.97 billion but missed estimates of $41.24 billion, according to data compiled by LSEG.
Uber's growth has slowed in recent quarters from post-pandemic highs as an uncertain economy and elevated inflation levels weigh on commuters.
The company's diversified range of services around the world, which include freight, delivery and ride-hailing, has helped it offset risks in each of the three verticals.
Uber's core mobility business grew 26.4%. Overall revenue for the third quarter came in at $11.19 billion, beating the average analyst estimate of $10.98 billion.
"Revenue growth outpaced gross bookings growth primarily due to lower supply incentives and refunds and appeasements, coupled with advertising revenue growth," CFO Prashanth Mahendra-Rajah said.
Uber has also been contending with competition from Lyft, a U.S.-focused company that has been attempting to entice customers with competitive pricing and other features.
Net income attributable to Uber stood at $2.61 billion in the third quarter, including a $1.7 billion pre-tax gain related to the company's equity investments, while operating profit was a record $1.06 billion.
Adjusted earnings before interest, taxes, depreciation and amortization - a closely-watched profitability metric - came in at $1.69 billion, compared with analysts' average estimate of $1.64 billion.
The company forecast fourth-quarter adjusted EBITDA to come in between $1.78 billion and $1.88 billion versus analysts' expectation of $1.84 billion.
