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In right this moment’s age of multi-trillion greenback S&P 500 corporations, some won’t contemplate Uber Applied sciences (NYSE:UBER) to be a large. It ‘solely’ has a $150bn market cap, in any case.
Nevertheless, its dominance isn’t doubtful, with greater than 200m month-to-month customers finishing over 40m journeys day-after-day by its platform within the last quarter of 2025.
Wanting forward although, Uber is making strikes that would see it develop into an excellent greater enterprise…
Constructing a brilliant app
After beginning out as a ride-sharing app, Uber expanded into meals supply and freight. Shifting issues from level A to level B, basically.
Up to now couple of years although, it has had success layering extra providers into its app. For instance, I beforehand used Trainline to guide practice tickets. Nevertheless, I now use Uber for this as a result of I get Avios factors after reserving.
I’m additionally stored 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 retailers. As such, I exploit Simply Eat far much less typically these days.
This week, the corporate introduced a partnership with Expedia to supply in-app resort bookings and broaden journey providers. Expedia hosts over 700,000 properties worldwide, so this could possibly be a giant deal.
I at the moment use Reserving.com for inns. Would I contemplate switching to Uber in future? Properly, I’d, as “Uber One members will earn 10% again in Uber One credit on all resort bookings, plus they’ll save no less than 20% on a rolling listing of greater than 10,000 inns 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 inns and vacation leases, Deliveroo for meals supply, once I can simply use Uber for every part?
The corporate additionally needs folks to do on-line purchasing on the app.
Uber is turning into an app for every part — serving to folks go, get, and now journey multi functional place.
Dara Khosrowshahi
Are robotaxis a risk or a possibility?
As thrilling as this sounds — and I do assume the long-term development potential could be very vital right here — robotaxis do current a risk. Leaders like Tesla and Waymo have huge enlargement 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) firms at a charge of knots. The motivation for Uber to make robotaxis a commoditised service is apparent and crucial.
Nevertheless, I do have some considerations as a result of the agency has dedicated $10bn to purchase robotaxis for its community and take chunky fairness stakes in varied AV corporations.
That is probably a transfer away from its capital-light mannequin, which could possibly be a danger to long-term revenue margins.
Am I frightened?
Alternatively, driverless taxis might considerably decrease Uber’s prices. And I nonetheless assume the agency has a robust probability of turning 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 right this moment round $74.
