Uber Technologies Inc. said elevated fuel costs are putting pressure on its ride-hailing operations in key emerging markets, where both drivers and passengers are highly sensitive to changes in transport prices.
During the company’s third-quarter 2026 earnings call, Chief Financial Officer Balaji Krishnamurthy said the escalation of the conflict in the Middle East had contributed to higher fuel costs across global markets. He noted that the impact was particularly clear in countries where drivers face rising operating expenses and customers are less able to absorb fare increases.
Fuel costs affect driver availability
According to Krishnamurthy, the effect of higher fuel prices has been substantial in Brazil and India. He said the company has seen fuel-related pressure affect the supply of drivers in both markets.
Ride-hailing drivers generally carry the cost of petrol or diesel purchases. When fuel becomes more expensive, some drivers may shorten their working hours, take fewer trips or move to other forms of work that offer more predictable earnings. That can reduce the number of available vehicles on the platform, especially during busy periods.
For passengers, lower driver availability can lead to longer waiting times and higher trip prices if demand remains strong.
Uber reviews incentives and pricing tools
Chief Executive Officer Dara Khosrowshahi said Uber uses incentive programmes for riders, delivery partners and driver partners depending on local conditions. These offers can vary according to the day, location and level of demand.
The company may use such incentives to keep enough drivers active in areas where higher fuel expenses make ride-hailing less attractive. However, providing additional payments to drivers can also increase operating costs for the platform.
Khosrowshahi indicated that pricing decisions are not based on a single global formula. Uber relies on algorithms and local market data to balance demand, driver availability and the cost of operating in each city.
Emerging markets remain sensitive
The pressure in India and Brazil illustrates a broader challenge for digital transport platforms operating in emerging economies. Customers in these markets often respond quickly to even modest fare increases, while drivers may be unable to continue working if their fuel expenses rise faster than their income.
The conflict-linked rise in energy costs could therefore force Uber to adjust incentives, pricing and supply-management measures in affected markets. Any sustained increase in fares may depend on fuel trends, local competition and whether driver supply recovers in the coming months.
Shares of Uber Technologies Inc. (NYSE: UBER) were trading near $69.84 at the time of the report.
