Uber Stock Soars 52% YTD. Here's Why More Upside Is in Store.
Uber (UBER) stock has delivered a significant return in 2025, rising 51.9% year-to-date and far outpacing the broader market, with the S&P 500 Index ($SPX) up just 3.8% over the same period. The rally reflects investor confidence in Uber's growing role as more than just a ride-hailing company. Uber is evolving into a multi-faceted platform with diverse revenue streams and significant long-term potential.
Uber has steadily expanded beyond rides to include food and grocery delivery, as well as advertising. Its growing advertising business, powered by its extensive user data and scale, is starting to show promise. Meanwhile, Uber One, its all-in-one membership program, is helping deepen customer loyalty and drive usage across services, boosting both frequency and retention.
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Notably, Uber is also positioning itself at the forefront of the autonomous vehicle (AV) revolution. With around 170 million monthly active platform consumers (MAPCs), Uber holds a significant advantage. It can serve as a key demand aggregator for AV manufacturers and is quickly becoming the go-to marketplace where AV supply meets rider demand.
The company's high utilization network makes it an attractive partner for AV firms looking to maximize efficiency and occupancy. Furthermore, Uber has been rapidly expanding its AV footprint. It's now running at a pace of 1.5 million autonomous Mobility and Delivery trips annually across its platform. In March, Uber launched an exclusive partnership with Waymo in Austin, with Atlanta recently added to the list. More expansion is underway, with plans to scale to hundreds of AVs in Austin alone.
Strategically, Uber isn't betting on just one AV partner. It is building a global AV ecosystem. The company has struck 18 partnerships worldwide. In the U.S., Uber is working with Volkswagen (VWAGY) to bring fully autonomous vehicles onto its platform. Internationally, it has expanded its relationship with WeRide (WRD) to cover 15 new cities over the next five years and is preparing for a European rollout with its new partner, Momenta, early next year.
Uber is also making headway in autonomous delivery. Through partnerships with Coco, Serve (SERV), and Avride, it's rolling out self-driving delivery services in cities like Chicago, Miami, Dallas, and Jersey City.
While these long-term initiatives are exciting, Uber's core businesses are performing well. In Q1 2025, user engagement surged, with total trip volume increasing by 18% year-over-year. Uber's ability to retain users also remained high, and the supply side is equally strong, with more drivers joining the platform.
The company's financials reflect that momentum. Its adjusted EBITDA grew 35% in the first quarter, and free cash flow reached $2.3 billion. While Uber's user base remains large, it represents just 5% of the adult population in its operating regions. That leaves a vast runway for future growth.
The company's ride-hailing (mobility) business continues to deliver solid growth led by higher bookings and trips. Its competitive pricing, focus on user engagement, and expansion into suburban markets will accelerate the segment's growth. At the same time, Uber's low-cost options, such as Uber Shuttle, are rolling out at major airports, expanding accessibility and growing their share in price-sensitive segments.
On the delivery front, the momentum continues. Delivery trips are expanding rapidly, and its move to expand into non-restaurant categories, especially groceries and retail, augurs well for growth. Uber's advertising arm is another fast-growing, high-margin business. With offerings like sponsored listings and Journey Ads, ad revenue is now on a $1.5 billion annual run rate, up more than 60% year-over-year.
Uber is no longer just a ride-hailing company. It's becoming a technology-driven platform that connects users with mobility, delivery, and emerging autonomous solutions. With strong momentum, expanding partnerships, and increasing platform utilization, Uber's stock may still have room to climb further as it continues to redefine the way people and goods move.
Wall Street analysts have a 'Strong Buy' consensus rating on Uber stock. The highest price target for Uber stock is $115, suggesting a potential gain of around 25% from current levels.
On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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