Uber CEO Dara Khosrowshahi has warned that riders in markets such as India and Brazil could face higher prices as the ongoing conflict in Iran drives up global fuel costs and puts pressure on driver supply, according to comments made during the company’s third-quarter 2026 earnings call. As reported by Benzinga, the ride-hailing giant said rising fuel prices linked to escalating tensions in the Middle East are having a noticeable impact on emerging markets, where both drivers and consumers tend to be more sensitive to price changes. Uber executives indicated that the company is adjusting incentives to maintain driver availability, a move that could result in higher fares for customers.
Uber reported third-quarter revenue of $14.77 billion, up 10% year-over-year and above Wall Street expectations of $14.70 billion. However, adjusted earnings per share came in at 88 cents, missing analysts’ consensus estimate of 91 cents. The company also repurchased $750 million worth of shares during the quarter, while gross bookings increased 20% year-over-year to $59.8 billion, reflecting continued growth across its ride-hailing and delivery businesses.
Asked about supply constraints in emerging markets, Chief Financial Officer Balaji Krishnamurthy said the escalation of the Middle East war had pushed up fuel costs worldwide. The effect is felt “materially” in emerging markets, he said, because consumers and drivers there are both sensitive to price. Krishnamurthy singled out Brazil and India, where he said higher fuel prices have meaningfully affected the supply of drivers. Commenting on the situation, Dara Khosrowshahi said Uber operates a flexible incentive system that allows it to balance support between riders and drivers depending on market conditions.
Khosrowshahi further emphasised that the data science and algorithms play a major role in the decision-making process at Uber. He added that the system at Uber analyse billions of trips to decide where the incentives should go, enabling the company to optimise the spending between the riders and drivers more effectively. As per Khosrowshahi, these algorithms also help the company in responding quickly to the changing dynamics of market, including fuel-price and driver shortages. You use AI every day. Now get your AI Quotient. Take the AIQ test.
Uber previously directed a larger share of incentives toward riders to reduce prices and encourage demand, according to the CEO. “We will do trade-offs against profitability, but that is something that we handle,” Khosrowshahi said, explaining that the company constantly adjusts incentives based on supply and demand conditions. This year, however, the company is reducing some rider incentives and redirecting those funds toward driver incentives to help offset the impact of rising fuel costs and maintain marketplace balance. The shift could lead to higher ride prices for customers as Uber attempts to ensure sufficient driver availability while protecting profitability.