Legal costs impact Uber’s financial results following years of regulatory disputes

Uber’s first-quarter results fell far short of expectations, with the ride-hailing company reporting an operating profit of $172 million, well below analysts’ forecasts of over $600 million. The company attributed the shortfall to legal and regulatory costs, including a $178 million settlement with taxi drivers in Australia.

Despite the disappointing results, Uber’s revenue for the quarter grew 15% to $10.1 billion, in line with analyst expectations. However, the company reported a net loss of $654 million, missing forecasts for a net income of about $500 million. Uber also took a $721 million writedown on the value of its stakes in other companies, including self-driving car company Aurora and Chinese ride-hailing business DiDi.

CEO Dara Khosrowshahi remained optimistic, stating that the results demonstrate Uber’s ability to deliver consistent, profitable growth at scale. The company’s adjusted earnings before interest, tax, depreciation, and amortization rose 82% to a record $1.4 billion, beating analyst forecasts.

Uber is looking to expand its services, including a partnership with Instacart to allow grocery delivery from restaurants listed on Uber Eats. The company also aims to grow its grocery delivery segment to compete with rivals like DoorDash.

Despite the challenges, Uber remains confident in its ability to aggregate demand for self-driving vehicles and has initiated a $7 billion share buyback program to offset employee stock-based compensation obligations.

Investors will be watching closely to see how Uber navigates the regulatory challenges and continues to drive growth in its core businesses. Stay tuned for more updates on Uber’s strategy in the coming weeks.