What They Do
Uber operates the world's largest ride-sharing and food delivery platform, connecting consumers with drivers and restaurants through its mobile app. The company generates revenue by taking a commission (typically 20-30%) from each transaction, serving over 200 million monthly active users across rides, food delivery, and freight services. They've evolved from a pure ride-sharing company into a comprehensive mobility and logistics platform.
Investment Thesis
**Scale reaching profitability inflection**: Generated $8.7B in adjusted EBITDA (+35% YoY) and $9.8B in free cash flow (+42% YoY), demonstrating the platform's ability to monetize its massive 450M+ annual user base**Autonomous vehicle competitive advantage**: Expanding AV operations to 15 cities by 2026 with 30% higher utilization rates on Uber's platform vs. standalone services, positioning them as the distribution layer for the AV future**Diversified growth engines**: 40% of users now use multiple Uber products, with international representing 60% of mobility bookings and advertising revenue exceeding previous 2% penetration targetsKey Risks
**Regulatory uncertainty**: Ongoing battles over driver classification and operating licenses across global markets could impact unit economics and expansion plans**Autonomous vehicle disruption**: While positioned as a partner, widespread AV adoption could eventually reduce demand for human drivers and pressure take ratesGrowth Story
Revenue is expected to grow from $59.8B to $66.9B by 2027, driven by geographic expansion and cross-selling success. Monthly active users accelerated from 14% to 18% growth through 2025, with international markets and suburban areas growing 1.5-2x faster than major cities. The company has achieved five consecutive years of 20%+ gross bookings growth, reaching a 15 billion annual trip run rate.
Profitability Profile
Gross margins of 39.8% reflect the asset-light marketplace model, with significant operating leverage driving EBITDA growth of 35% year-over-year. Free cash flow generation of $9.8B demonstrates the business has reached sustainable profitability at scale. Insurance cost headwinds are transitioning to tailwinds, enabling price stability and margin expansion, particularly in the U.S. market.
Competitive Position
Uber maintains the largest global ride-sharing network with superior demand density and marketplace technology that creates network effects. Key competitors include Lyft (U.S.), DoorDash (delivery), and regional players internationally, but Uber's scale advantage is most evident in AV partnerships where utilization rates significantly exceed standalone platforms. The company's multi-product ecosystem creates switching costs and cross-selling opportunities competitors struggle to match.
Recent Momentum
Q4 2025 delivered strong beats with gross bookings up 22% and user growth accelerating through the year. The market responded positively to the combination of robust profitability metrics and AV partnership momentum. However, a CFO transition was announced with Prashanth Mahendra-Rajah stepping down in February 2026.
What Wall Street Thinks
Analysts are increasingly bullish on Uber's transition from growth-at-all-costs to profitable scale, with particular excitement around AV positioning. The consensus expects continued revenue acceleration in 2026 driven by U.S. market improvements and international expansion. Debates center on autonomous vehicle timeline and Uber's ability to maintain take rates in an AV-dominated future.
The Bottom Line
Uber has successfully evolved from a cash-burning disruptor to a profitable platform generating nearly $10B in free cash flow while positioning itself as the essential distribution layer for the autonomous vehicle revolution.
