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In in the present day’s age of multi-trillion greenback S&P 500 companies, some may not take into account Uber Applied sciences (NYSE:UBER) to be a large. It ‘solely’ has a $150bn market cap, in spite of everything.
Nevertheless, its dominance will not be unsure, with greater than 200m month-to-month customers finishing over 40m journeys each day by its platform within the remaining quarter of 2025.
Wanting forward although, Uber is making strikes that might see it develop into a good larger enterprise…
Constructing a brilliant app
After beginning out as a ride-sharing app, Uber expanded into meals supply and freight. Transferring issues from level A to level B, basically.
Prior to now couple of years although, it has had success layering extra companies into its app. For instance, I beforehand used Trainline to e book prepare tickets. Nevertheless, I now use Uber for this as a result of I get Avios factors after reserving.
I’m additionally saved loyal by the Uber One subscription, which had over 46m members on the finish of 2025. This provides me free or discounted supply on orders from most eating places and outlets. As such, I take advantage of Simply Eat far much less usually these days.
This week, the corporate introduced a partnership with Expedia to supply in-app lodge bookings and broaden journey companies. Expedia hosts over 700,000 properties worldwide, so this may very well be an enormous deal.
I at the moment use Reserving.com for lodges. Would I take into account switching to Uber in future? Effectively, I would, as “Uber One members will earn 10% again in Uber One credit on all lodge bookings, plus they’ll save no less than 20% on a rolling listing of greater than 10,000 lodges worldwide“.
CEO Dara Khosrowshahi says there are too many apps knocking about, and Uber needs to assist “folks reclaim their time“.
In different phrases, why trouble utilizing Trainline for trains and coaches, Skyscanner for flights, Reserving or Airbnb for lodges and vacation leases, Deliveroo for meals supply, after I can simply use Uber for every thing?
The corporate additionally needs folks to do on-line purchasing on the app.
Uber is changing into an app for every thing — serving to folks go, get, and now journey multi functional place.
Dara Khosrowshahi
Are robotaxis a risk or a chance?
As thrilling as this sounds — and I do assume the long-term progress potential could be very vital right here — robotaxis do current a risk. Leaders like Tesla and Waymo have massive growth plans for self-driving taxis they usually don’t essentially contain Uber.
To counter this risk, the corporate has been signing partnerships with autonomous car (AV) corporations at a price of knots. The inducement for Uber to make robotaxis a commoditised service is apparent and essential.
Nevertheless, I do have some issues as a result of the agency has dedicated $10bn to purchase robotaxis for its community and take chunky fairness stakes in numerous AV companies.
That is probably a transfer away from its capital-light mannequin, which may very well be a threat to long-term revenue margins.
Am I frightened?
Alternatively, driverless taxis may considerably decrease Uber’s prices. And I nonetheless assume the agency has a robust probability of changing into the world’s largest facilitator of AV journeys by 2029.
So, as a shareholder, I’m not overly frightened but.
The inventory’s down 26% since November, giving a ahead earnings a number of of twenty-two. Given the tremendous app potential, I feel Uber’s price contemplating in the present day round $74.
