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It's been a very bumpy ride for Uber (UBER) and its shareholders lately with shares skidding lower by nearly 30% since mid-October as concerns about slowing rideshare growth and the possible impact that robotaxis may have on its business have weighed on sentiment. On the former point, the company provided an upbeat outlook for its Mobility segment during yesterday's Barclays Conference, forecasting mid-to-high or low-twenties growth for the first three quarters of FY25. For a reference point, gross bookings for Mobility grew by 24% on a constant currency basis in 3Q24.

On the latter point, UBER's robotaxi plans hit a speedbump yesterday after General Motors (GM) surprised the market by announcing its decision to scrap its robotaxi development plans due to the substantial capital required to fund that unprofitable business. This move puts UBER's partnership with GM into serious doubt, which was announced in August and would have brought Cruise autonomous vehicles onto the Uber platform, beginning next year.

• During the Barclays event, UBER also stated that it expects a mid-to-high teens gross bookings CAGR over a three-year period, providing some assurance that the recent downturn in growth for Mobility won't accelerate further. When the company reported Q3 results on October 31, the stock sold off sharply as Mobility gross bookings growth slowed to 24% from 27% in Q2. Further, UBER's Q4 gross bookings guidance of $42.75-$44.25 bln equated to yr/yr growth of 18% at the midpoint, representing a decrease from Q3's growth of 20% and Q2's increase of 21%.
• Supporting Mobility's growth in the coming years will be UBER's efforts to expand into less densely populated markets that have limited on-demand transportation services. During the Q3 earnings call, CEO Dara Khosrowshahi commented that about 45% of the U.S. population lives in places with limited rideshare coverage, providing an opportunity for UBER to focus on more rural and suburban markets.
• In terms of the company's robotaxi ambitions, GM's planned exit not only removes a key partner from the mix, but the departure of a well-capitalized company like GM also shook the market's confidence in robotaxis overall. In other words, if GM is unwilling to pour its resources into robotaxi development, it begs the question whether investing in a highly uncertain endeavor like robotaxis is worth the risk for any other company.
• With that said, UBER's robotaxi aspirations are far from dead. The company has recently expanded its partnership with Google's (GOOG) Waymo with the companies aiming to launch autonomous rideshare vehicles in Atlanta in 2025.

Badly in need of some positive headlines that could stem the stock's steep selloff, the Barclays Conference provided UBER with a forum to spin a more positive narrative. The company's updated guidance, including its expectation to grow adjusted EBITDA at a 40% clip from 2023-2026, did just that, helping the stock to reverse course and move higher.