Is UBER's AV Push Reason Enough to Invest in the Stock Currently?

Uber Technologies UBER is looking to establish a strong foothold in the lucrative robotaxi space through a partnership-focused approach. The global autonomous vehicle market, valued at $3.36 trillion in 2025, is expected to reach $4.44 trillion in 2026 and $41.75 trillion by 2034, at a compound ann…

Uber Technologies UBER is looking to establish a strong foothold in the lucrative robotaxi space through a partnership-focused approach. The global autonomous vehicle market, valued at $3.36 trillion in 2025, is expected to reach $4.44 trillion in 2026 and $41.75 trillion by 2034, at a compound annual growth rate of 32.3% during 2026-2034, according to Fortune Business Insights.

In 2020, Uber sold the self-driving division but retained its focus on becoming the ultimate ride-hailing super app. Multiple collaborations highlight Uber’s commitment to integrating cutting-edge AV technologies into its platform. By working with third-party autonomous technology developers, the company sidesteps the heavy research and development costs required to build proprietary self-driving systems.

Uber’s dominant market share in the ride-hailing industry also gives it a unique advantage. With its vast network of drivers and customers, Uber can quickly scale autonomous services once the technology matures. Its app is designed to integrate AVs from multiple partners, giving users a variety of options.

Some Recent AV Collaborations of Uber

Last month, Uber, in collaboration with WeRide WRD, a Chinese autonomous vehicle company, announced plans to introduce commercial robotaxi services in the Greater Zurich Region. This move represents their second joint deployment in Europe, coming just weeks after the announcement of a similar initiative in Madrid.

The service is expected to commence later this year in partnership with Switzerland’s Federal Roads Office (“FEDRO”), pending regulatory approvals. At launch, passengers will be able to access the robotaxi service through the Uber app. The launch builds on the partners’ growing track record in autonomous mobility.

Since December 2024, WeRide and Uber have introduced robotaxi services across several Middle Eastern markets, including fully driverless commercial operations in Abu Dhabi and Dubai, as well as public services in Riyadh. These deployments provide an operational foundation for their European expansion. In November 2024, WeRide obtained a driverless permit from FEDRO, allowing autonomous vehicle operations on public roads in Zurich’s Furttal region.

Earlier in the year, Uber entered into a strategic partnership with Amazon’s AMZN Zoox to deploy its purpose-built robotaxis on the former’s platform. The Amazon unit’s robotaxis differ from many other autonomous vehicles currently in development because they are not modified versions of traditional passenger cars. Instead, the vehicles are purpose-built specifically for ride-hailing services and designed to enhance rider comfort and social interaction. The Amazon unit and Uber indicated that Zoox rides are expected to be available in Los Angeles next year.

Undoubtedly, Uber’s AV ambitions are commendable. Now, the question is whether it is worth buying the stock at current prices. Let us dig deeper to find out.

Further Factors Working in Favor of UBER

Gross Bookings Growth: Uber continues to benefit from robust growth in gross bookings. The company has been recording solid double-digit growth in gross bookings across both its mobility and delivery businesses.

Despite the crisis in the Middle East, UBER’s Mobility business saw impressive demand, with segmental revenues increasing 5% year over year on a reported basis and 1% on a constant currency basis to $8.2 billion in the first quarter of 2026. Gross bookings from the unit were highly impressive, aiding the first-quarter results. Gross bookings from the Mobility segment in the March quarter increased 20% year over year on a constant-currency basis to $26.4 billion.

Uber’s Delivery business also performed well in the quarter, with segmental revenues growing 23% year over year on a constant-currency basis. Gross bookings from the Delivery segment in the first quarter rose 23% year over year on a constant-currency basis to $26 billion. Total gross bookings jumped 25% to $53.7 billion, ahead of the Zacks Consensus Estimate of $52.9 billion.

The gross bookings forecast for the second quarter of 2026 was very impressive, highlighting the bullishness surrounding the key metric. Despite the geopolitical woes, gross bookings are projected in the range of $56.25-$57.75 billion, highlighting growth of 18% to 22% year over year on a constant-currency basis. The outlook assumes a roughly 2 percentage-point currency tailwind to total reported year-over-year growth.

Continued expansion in gross bookings strengthens Uber’s revenue base, improves operating leverage across its platform and deepens network effects among riders, drivers and merchants. This momentum not only supports revenue growth but also enhances the company’s long-term profitability potential by enabling fixed costs to be distributed more efficiently across a larger transaction base.

Commendable Expansion Efforts: Even though Uber’s primary business is ridesharing, it has diversified into food delivery and freight over time. Diversification is imperative for big companies to reduce risks and Uber has excelled in this area. As part of its expansion efforts, Uber acquired parking startup SpotHero. Following the deal, Uber has introduced a native, in-app parking reservation feature powered by SpotHero, focusing on parking options for commuters as well as at events, venues and airports. Over time, Uber One members may also receive parking-related benefits as part of their membership.

The company is looking to strengthen Uber Eats, its online food ordering and delivery platform and has inked multiple deals recently on that front. Recently, Uber announced the inclusion of multiple new retailers to the Uber Eats marketplace, aimed at expanding its retail selection availability for on-demand delivery. Uber Eats is expanding beyond its patent food delivery business and offering a vast marketplace which covers everyday needs such as skincare, shipping supplies, art materials, sporting goods and pet supplies.

Earnings History: Uber’s earnings have outpaced the Zacks Consensus Estimate in three of the past four quarters, missing the mark on the other occasion. The average beat is 89.6%.

Uber Technologies Price and EPS Surprise

Uber Technologies price-eps-surprise | Uber Technologies Quote

Growth Opportunity for UBER Is Real, But So Are the Risks

While Uber is benefiting from its AV-related ambitions and gross booking strength, investors should remember that it is facing some headwinds that cannot be ignored.

UBER’s financial metrics indicate that its leverage is elevated and is a massive negative for its shareholders. The long-term debt burden of the company stood at $10.5 billion at the end of the first quarter of 2026, which translates into a long-term debt-to-capitalization of 29.4%, which is reasonable but above the sub-industry’s 9.5%. UBER’s times interest earned ratio at the March quarter-end was 12.1, which is much lower than its industry, indicating a high risk of default.

Shares of Uber have declined in double digits (% wise) over the past six months, underperforming the Zacks Internet-Services industry as well as the S&P 500 index.

6-Month Price Comparison

Apart from the regulatory headwinds, highlighted by labor unrest, the geopolitical woes have the potential to hurt Uber’s operations.

What Do Estimates Suggest for Uber?

The Zacks Consensus Estimate for 2026 implies a year-over-year decline of approximately 44% in EPS, while 11% growth is indicated in terms of revenues. Moreover, the earnings estimate revision trend is mixed. While full-year 2026 estimates have moved lower over the past 60 days, projections for the current and next quarter and full-year 2027 have improved.

How to Play UBER Stock Currently?

While Uber’s weak stock performance, high debt load, labor unrest and geopolitical woes present near-term challenges, the outlook for the ride-hailing giant remains far from discouraging.

The company’s strategic diversification, AV focus and shareholder-focused initiatives continue to serve as key strengths. With a market capitalization of $146.89 billion, Uber remains well positioned to navigate economic uncertainties. Uber’s ongoing commitment to diversification — through acquisitions, geographic expansion and innovative product offerings — has helped reduce risks and reinforce its competitive standing.

Overall, Uber’s scale, strategic investments and diversification efforts provide a strong foundation for sustained long-term growth. Despite the recent unfavorable price performance, maintaining a position in this Zacks Rank #3 (Hold) stock appears to be a sensible approach for now, while potential investors may prefer to wait for a more attractive entry point.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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