Uber plans to have more than 2,000 autonomous vehicles operating worldwide by the end of 2027, CEO Dara Khosrowshahi told investors. The company expects to have about 700 vehicles on its platform by the end of this year.

The expansion comes as Uber’s core mobility business faces a shortage of drivers and rising fuel costs. Khosrowshahi said higher fuel prices linked to the conflict in the Middle East had weighed on growth, and warned that conditions could worsen in the fourth quarter as the conflict escalates during a busy travel period. He also cited tighter local labor markets and competition for drivers in several international markets.

Uber said its mobility division generated about $7.5 billion in revenue in the three months ended September 30, around $200 million below analysts’ expectations. Group revenue was $14.8 billion, roughly $100 million above forecasts. Operating profit reached $1.4 billion, below the expected $2.2 billion after the company set aside $484 million for potential legal and tax settlements.

The company has pledged to invest more than $10 billion to expand its robotaxi network and aims to put more than 120,000 driverless vehicles into service over time. Uber currently offers limited autonomous-vehicle services in nine cities, including Austin, Atlanta and London, and plans to add up to 15 locations this year.

Uber will fund the robotaxi expansion with its own resources over the next year, Khosrowshahi said. The company expects to seek outside investment once its autonomous fleet exceeds 10,000 vehicles, which he said could happen from 2028.

Competition includes Waymo, which has about 4,000 vehicles in operation, mostly in the United States. Waymo operates more than 500 vehicles for Uber in Austin and Atlanta. People familiar with the matter said the Alphabet-owned company aims to have more than 8,000 vehicles in service by the end of this year.

Uber also reported that gross bookings, a measure of customer spending across its businesses, rose 20% year over year to $59.8 billion in the third quarter, in line with analyst estimates. In September, the company announced plans to cut about 10% of its global workforce, or approximately 3,300 jobs, to free up resources for investments including robotaxis.

Sources: Folha Mercado.