Uber: Dominating Ride-Sharing and Delivery

Uber Technologies Company OverviewZacks Rank #3 (Hold) stock Uber Technologies (UBER) is the dominant player in the North American ride-sharing business. Beyond the United States, Uber has expanded its business into multiple worldwide areas, including Canada, Latin America, Europe, the Middle East, and Asia (excluding China). Through its mobile application and vast network of drivers, Uber offers various services to customers based on details like the number of riders, vehicle style, pets or no pets, and rushed services (for a higher fee). In addition, Uber has diversified into the delivery business.Uber Eats BoomsWhile the COVID-19 pandemic upended many businesses, Uber benefitted. Because of stay-at-home policies, food delivery services like Uber Eats and DoorDash (DASH) have seen online order volumes surge. Even after economies reopened, the habit of placing orders online has stuck – especially among the younger generations. Meanwhile, in a recently announced multi-year partnership, Delta (DAL) SkyMiles members can earn miles on Uber rides and Uber Eats deliveries. Meanwhile, Uber Ears has partnerships with Costco (COST), Domino’s (DPZ), MapleBear (CART) (Instacart) and countless others.Uber & Waymo PartnershipA bearish argument against UBER is that autonomous robotaxis will replace UBER. However, Uber has partnered with the leader in autonomous taxis, Alphabet’s (GOOGL) Waymo. Waymo is currently the only active robotaxi service in the US and is available in multiple states. Customers can book Waymo robotaxis through the regular Uber app, maintaining the familiar Uber experience.Improving FundamentalsUBER has finally scaled to the level where it is a consistently profitable business. In 2023, UBER finally turned a profit; since then, it hasn’t looked back.Image Source: Zacks Investment ResearchAnother positive sign is that with improved cash flows, UBER management is intent on rewarding shareholders. Last year, the company announced a massive $7 billion buyback program – the first in company history.Stellar Relative StrengthUber shares are holding up extremely well compared to the general market and its main competitor, Lyft (LYFT). Year-to-date, UBER shares are up 21.7%, while LYFT has sunk 17%, and the S&P 500 is down 12.44%.Image Source: Zacks Investment ResearchShould the market rebound, UBER is poised to morph into a leader.Bottom LineUber Technologies has morphed into a fundamental market leader with consistent profitability. In addition, a share buyback program, robust relative stock performance, and a dominant position in the ride-sharing and food delivery markets put the stock in a strong position for the remainder of 2025.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Domino's Pizza Inc (DPZ): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Maplebear Inc. (CART): Free Stock Analysis Report Lyft, Inc. (LYFT): Free Stock Analysis Report Uber Technologies, Inc. (UBER): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks