Uber shares rise on Q4 outlook; GM hits brakes on Cruise driverless van
Shares of Uber Technologies, all-sessions, have risen on an upbeat forecast for Q4 profit and gross bookings, despite Q3 revenue missing estimates.
Separately, General Motors is halting the production of its fully autonomous Cruise Origin van.
(Video summary)
Uber promises strong Q4
Uber recently reported its third quarter (Q3) earnings of $9.3 billion, which were slightly lower than what was expected.
However, the company is optimistic about its future and is predicting strong numbers for the fourth quarter (Q4). They anticipate gross bookings between $36.5 billion and $37.5 billion, which is higher than what was initially anticipated. Uber also expects its core profit for the fourth quarter to surpass expectations.
Driverless cars
Apart from the financial updates, Uber is also venturing into the realm of autonomous vehicles. They have plans to introduce self-driving cars in the near future.
However, their competitor, General Motors (GM), has recently faced some challenges in this sector. GM has temporarily stopped production of their fully autonomous Cruise Origin van due to concerns over safety. The regulators in California have even suspended their license to operate these robo-taxis, as they are worried about the potential risks to the public.
The National Highway Traffic Safety Administration is also investigating the safety measures taken by Cruise. This situation has significant implications for other companies involved in the development of autonomous driving technology, such as Uber and Tesla.
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