Today, we’re taking a clear-eyed look at Uber Technologies (NYSE: UBER). Uber is, as you know is a ride-hailing service. It connects people to ridesharing, rentals, taxis, and other modes of transportation.
They also have a Delivery segment that will bring you food and a Freight segment that “ manages transportation and logistics networks, which connects shippers and carriers in a digital marketplace.”
But today we care about its deal with Waymo, Alphabet’s autonomous driving unit. As you know, we here at Outsider Club are big on the robotaxi/autonomous driving wave. And UBER is one way to play it.
The stock gapped up today on its Waymo deal:
Uber integrates Waymo’s self-driving tech into Uber’s platform, offering driverless rides.
This reduces reliance on human drivers, Uber’s largest cost, which accounts for roughly 40% of ride expenses. Waymo’s tech is proven, with over 40 million autonomous miles driven, giving Uber an edge in scaling efficiency.
Lyft has a similar Waymo partnership, but Uber has a broader global footprint—70 countries versus Lyft’s U.S.-Canada focus.
DoorDash, another peer, is focused on delivery and lacks a comparable autonomous vehicle strategy, limiting its cost-cutting potential in this area.
Uber is Cheap
Uber’s balance sheet reflects a mature company. In Q1 2025, Uber posted $10.1 billion in revenue, up 15% year-over-year, with $1.1 billion in free cash flow, a 25% increase.
Net debt is manageable at $11 billion, with a debt-to-equity ratio of 45% and $6 billion in cash provides flexibility. Operating income reached $1.23 billion, yielding a 10.7% operating margin.
Compare that to Lyft: $1.45 billion in revenue, but a $28.85 million operating loss, resulting in a -2% operating margin.
DoorDash, while profitable, reported a 7.8% operating margin on $2.8 billion in revenue, trailing Uber’s efficiency. Uber’s EBITDA margin of 17% dwarfs Lyft’s 7%, reflecting stronger operational discipline.
Growth is where Uber shines. The global ride-sharing market is expected to reach $220 billion by 2030, driven by urbanization and digital adoption. Uber’s 74% U.S. market share and 170 million monthly active users give it scale that Lyft (30% share, 20 million users) can’t match.
Uber’s delivery arm, Uber Eats, grew bookings 20% year-over-year, outpacing ride-sharing. Lyft, without a delivery segment, relies solely on rides, limiting its growth runway. DoorDash, dominant in U.S. food delivery, saw 18% revenue growth but lacks Uber’s diversified mobility and freight segments.
Uber’s expansion into emerging markets like India and Latin America, plus investments in freight and advertising, projects 18% annual revenue growth through 2027, with EPS potentially doubling by 2028.
Valuation-wise, Uber trades at a trailing P/E of 14.3, attractive compared to the U.S. transportation industry average of 25.7 and a peer average of 68. Lyft’s trailing P/E is higher at 99, despite negative earnings, reflecting riskier bets on its smaller scale.
DoorDash’s P/E of 291 suggests investors are paying a premium for its delivery focus, but it lacks Uber’s margin strength.
Uber’s PEG ratio of 1.4 is below its estimated fair value of 1.7, signaling undervaluation relative to growth. Lyft’s PEG is less favorable due to slower growth, while DoorDash’s high P/E overshadows its growth metrics. Uber’s market cap of $184 billion towers over Lyft’s $6 billion and DoorDash’s $50 billion, reflecting its broader operations.
Uber’s not flawless, but its financial strength, diversified revenue, and Waymo partnership make it a standout in this sector.
Uber is ready to dominate the robotaxi market (it's not Elon's market just yet). And its a good way to play this transportation revolution. That said, there are three stocks that I think could do even better than Uber.
I wrote a free report that details three robotaxi stocks under $5. But you better not wait. They won’t be undiscovered for long.
All the best,
Christian DeHaemer
