Uber Faces Ride Slowdown, Shares Dive

Uber saw a big drop in their shares, about 11%, after warning that their ride bookings might not grow as fast as investors hoped. This news came as the company said their ride bookings, a key way to measure how many people use their service, grew slower than expected in the third quarter. Shares of their rival, Lyft, also took a hit, falling about 5. 3%. Experts think people are cutting back on ride-hailing due to rising prices and interest rates. Uber's CEO, Dara Khosrowshahi, thinks the suburbs could be the next big market for growth. He plans to make riding with Uber more affordable for longer distances and wants to add features that make it easier to wait and reserve rides in these areas. Even though Uber's third-quarter revenue was better than what analysts thought it would be, their forecast for the fourth quarter didn't meet expectations. They think their adjusted EBITDA, a measure of profitability, will be between $1. 78 billion and $1. 88 billion, compared to the expected $1. 84 billion. Uber's mobility business did see a growth in gross bookings at 26. 4%, and user engagement reached an all-time high. Their net income for the third quarter was $2. 61 billion, including a $1. 7 billion gain from their equity investments. Their operating profit was a record $1. 06 billion.