---
ticker: UBER
company: Uber Technologies Inc
exchange: NYSE
direction: long
conviction: high
entry_date: 2025-12-08
entry_price: 91.2
currency: USD
benchmark_at_entry: 6878.27
view: Long. Strong growth and best-in-class profitability with the possibility of autonomous vehicle expansion in the near term.
logo: uber.svg
---

- Technology platform providing ride-hailing services, courier services/food delivery and freight transport
- Largest ride sharing platform with over 180 million monthly active users and 6 million active drivers and couriers
- In the process of developing robotaxi services, partnering with Baidu to deploy some of their self-driving cars. Testing with WeRide partnership in Abu Dhabi.
- History of selling its regional divisions to rivals in exchange for significant minority equity stakes in businesses (China with Didi and SEA with Grab).
- Uber app now contains ads.
- Areas where Uber is fully banned: Alaska, China (by choice), Thailand (Grab), although in many other unlisted countries where it is illegal, Uber partners with local taxi firms under the Uber brand.
- Uber vs Lyft: Uber is worldwide, Lyft is only in US and Canada. Uber is typically cheaper.
- Uber vs Taxis: more convenient, branding/UI, cheaper fares, rating systems, etc.
- Uber monthly active users increasing steadily since the pandemic ended, far surpassing pre-pandemic levels.
- Segments: mobility — connects consumers with transportation modalities, including public transport. Delivery — retail and restaurant delivery. Freight — connects shippers and carriers in a digital marketplace, benefits from quickness and transparent pricing.
- Uber One — subscription service that is cross platform. Access to discounts, special pricing, priority service and exclusive perks. Also advertising on Uber Eats, partnering with brands.
- Competes with public transport as well as personal ownership of vehicles. Uber app shows users alternatives — good for regulation, branding (one-stop app) and offers cross-promotional opportunities.
- Lots more employees than I would expect, 31,100.
- Risks: driver classification, loss of drivers would harm Uber’s appeal. Uber cites the fact that drivers provide their own cars, choose their own hours and also are free to use competitor platforms as reasons why drivers are independent contractors.
- Investments: Zomato stake sold. Owns 26% of Aurora (self-driving car company).  Owns 13.6% of Grab. Owns $300 million of Delivery Hero shares.
- Acquired Postmates and Careem, in addition to many self-driving car technology companies.
- Financial strength (7): average debt statistics vs competitors and history. More expected as they are being compared with the software industry, and Uber’s operation is slightly more capital intensive. ROIC<WACC (destroying value).
- Growth (8): 3-year revenue growth strong vs industry, weak vs history. 3-Year EBITDA and book growth rates strong vs industry and excellent vs history. 3-5Y total revenue growth estimate (16%) good vs industry.
- Momentum (10): good momentum vs industry. Short-term RSIs suggest slightly overvalued vs industry.
- Liquidity ratios: slightly worse than industry average. Average relative to history.
- History of diluting shareholders, very poor buyback ratio but average vs industry and good vs history (3Y). However, shareholder yield vs industry is good and excellent vs history.
- Profitability (4): average gross margin vs industry and poor vs history. Very tough considering the comparison to broader industry. Very strong operating, net margins (top 96%) vs industry and history. Very strong ROE (top 97%), ROA, ROIC. Only gross margin is poor. ROC strong, ROCE strong, moat score 5, tariff resilience 8. I would give profitability personally a 7/10, downside is gross margin and years of profitability in past 10 (3).
- Value (7): amazing P/E ratio vs industry (top 82%) and history. Forward P/E ratio is average. P/S ratio suggest slightly overvalued vs competitors and average vs history, same story with P/B ratio. Same goes with most of the other valuation metrics (between bottom 40 and 30% vs industry). Earnings yield and FCF yield % strong vs competitors and very strong vs history.
- Profit and revenue trends very strong, 2025 way stronger in terms of net income in same quarter than 2024. Q3 2025 net income was almost equivalent to Q4 2024.
- Shares outstanding are starting to decrease in 2025, reversing long trend of dilution.
- Assets and shareholder equity increasing consistently.
- 57% mobility, 31.3% delivery, 11.7% freight.
- Negative tax rate (only in 2024).
- Mobility is driving revenue growth with strong growth, delivery is growing moderately and freight is stable. It is likely to be spun or sold according to some. It also does not have substantial profitability.
- 49% of revenue in US, 19% UK, 11.5% Asia Pacific and 9.5% EMEA.
- Lots of Guru sells. Some insider sells in Q3 2025, but matches past seasonal selling.
- Trading below Peter Lynch Earnings Line and 4x lower than price at Med P/E without NRI (75.5 PE).
- Significant stock-based compensation for key executives.
- Dara Khosrowshahi has been CEO since 2017.
- Revenue estimates are strong but EPS is forecasted to decrease annually with an estimate for a weak Q4 2025 EPS performance.
- FCF growth is strong and stable. Not significantly growing.
- No dividends have been paid in Uber’s history.
- GF (Guru Focus) suggests Uber is currently slightly overvalued but should be undervalued according to future estimates.
- Share price and revenue do not correlate strongly, however price vs book, price vs EPS, and price vs operating cash flow do.
- Near historic lows in terms of P/E ratio, but this is slightly manipulated by the strongest ever EPS quarter. This does concern me. Was trading at higher prices than currently before the shock EPS announcement.
- DCF suggests significantly overvalued according to FCF, and slightly overvalued with a default EPS growth rate of 5%