Uber Technologies Inc.’s shares declined by 5.3% today after it posted mixed earnings and disappointing guidance.

The ride-hailing giant’s revenue grew 12% in the second quarter to $14.19 billion. That’s about $50 million less than what analysts had expected. By contrast, Uber’s gross bookings, a metric that tracks the total value of customer purchases on its apps, topped the consensus estimate. The company reported $58 billion while Wall Street was looking for $57.23 billion.

“Uber’s platform advantage continues to compound: record consumers and engagement, and profitable growth across our business,” said Uber Chief Executive Officer Dara Khosrowshahi. “In fact, we’ve added more first-time users over the past twelve months than in any period over the past five years.”

Uber’s flagship mobility business accounted for more than half its revenue. However, it trailed the company’s other core segments in sales growth. Uber’s mobility revenue climbed just 1% to $7.36 billion despite the fact that its gross bookings jumped 22%.

The company’s growth plans in the transportation market emphasize emerging technologies. Shortly before the release of its quarterly results, Uber won a license to operate autonomous taxis in London. The company plans to use electric Ford Mustang Mach-E SUVs equipped with software from a startup called Wayve Technologies Ltd.

Autonomous driving systems typically use multiple artificial intelligence models. One identifies objects of interest near the host vehicle, another makes driving decisions and a third translates those decisions to low-level steering instructions. Wayve’s autonomy software replaces those models with a single neural network. According to the company, its approach eases training data preparation and supports many vehicle types.

Uber’s mobility growth push is not limited to ground-based transportation. In March, it teamed up with Joby Aviation Inc. to make the company’s flying taxis available via its app. Each aircraft can accommodate four passengers and cover 200 miles per hour.

Uber’s second largest revenue source is its delivery business. The unit significantly outpaced its mobility segment with year-over-year revenue growth of 28%. According to Uber, that translated into revenue of $5.24 billion on $27.46 billion in gross bookings.

Last month, the company announced plans to acquire rival Delivery Hero SE for $13.7 billion. The German food delivery provider generated 3.7 billion euros in revenue during the first half of the year. Its app enables users to order items from not only restaurants but also grocery stores, pharmacies and other businesses.

Uber plans to offload Delivery Hero units in 14 markets where it already has an established presence. It will sell the subsidiaries to investment firm SSW Partners for $1.6 billion. Once the transaction closes, Uber’s delivery and mobility business will have a presence in 99 markets worldwide.

The company ended the second quarter with an adjusted net income of $1.7 billion. That breaks down to adjusted earnings of $0.81 per share, which is in line with analyst expectations. However, Uber’s guidance for the current quarter missed the consensus estimate. The company expects to deliver adjusted earnings of $0.86 per share at the midpoint, or two cents less than expected, and gross bookings of $59.25 billion.

Photo: Uber