UBER Expands Retail Reach With DLTR Deal: Growth Thesis Strengthening?

Uber Technologies UBER inked a deal with value retailer Dollar Tree DLTR. The deal was in line with its efforts to expand service offerings, particularly in suburban and rural America. This has enhanced UBER’s retail delivery capabilities by adding nearly 9,000 stores to the Uber Eats platform. Uber Eats is the online food ordering and delivery platform of Uber.The partnership ensures that customers across states can now easily access affordable items of everyday use, ranging from party supplies to cosmetics and home essentials for on-demand delivery. To celebrate the arrival of the discount giant on the Uber Eats platform, it is offering $10 off on Dollar Tree orders of $30 or more. Uber One members get free delivery on eligible orders and other benefits. Expressing delight at the tie-up, Hashim Amin, the head of Uber’s grocery & retail, said, “Whether it’s last-minute gift wrap, a birthday balloon, classroom supplies, or your go-to snacks, Dollar Tree delivers real value and convenience. We’re proud to partner with Dollar Tree to bring their unique offering to Uber Eats, helping customers save valuable time and money.”The association with Dollar Tree comes close on the heels of Uber’s deal with another discount retailer, Dollar General DG. The tie-up ensured that more than 14,000 locations of Dollar General arrived on the Uber Eats platform. Following the association with Dollar General, launched on Aug. 8, customers can use the Uber Eats app to order food, beverages and other essentials.The above deals with the discount retailers are in sync with Uber’s efforts to grow its user base and diversify product offerings. Diversification is imperative for big companies to reduce risks and UBER has excelled in this respect. Even though Uber’s primary business is ridesharing, it has diversified into food delivery over time. Revenues from the Delivery segment increased 25% year over year on a reported basis and 23% on a constant currency basis to $4.10 billion in the second quarter of 2025.Even after economies reopened, the habit of placing orders online stayed among people driven by the associated convenience. Encouraged by the upbeat performance of the segment, Uber is making constant efforts to expand its Delivery operations.UBER’s Share Price Performance, Valuation and EstimatesShares of UBER have gained in double digits so far this year despite the tariff-related uncertainty. Courtesy of the upbeat performance,UBER’s shares have handily outperformed the Zacks Internet-Services industry on a year-to-date basis.Image Source: Zacks Investment ResearchFrom a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 3.53X. UBER is inexpensive compared with its industry.The Zacks Consensus Estimate for the third quarter, the fourth quarter, full-year 2025 and full-year 2026 have remained stable over the past seven days.Image Source: Zacks Investment ResearchUBER's Zacks RankUBER currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want 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 Dollar General Corporation (DG): Free Stock Analysis Report Dollar Tree, Inc. (DLTR): Free Stock Analysis Report Uber Technologies, Inc. (UBER): 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