Uber Technologies (UBER 2.43%) has long grabbed the attention of investors. Its rideshare platform has changed the face of transportation and competes against the likes of Lyft, DoorDash, and companies like Grab Holdings overseas.
Admittedly, success as a company does not necessarily lead to stock market profits in the short run. Still, Uber is likely a stock that could benefit investors long term, and three reasons explain why.
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1. Market leadership
Investors might recall that the former CEO of what is now GE Aerospace, Jack Welch, recommended investing in only the No. 1 or No. 2 companies in a specific business. Fortunately, Uber passes this test in more than one business.
First is mobility. Uber was not the first rideshare company. Nonetheless, it is the most successful, serving more than 15,000 cities across 70 countries, and it does this primarily without owning its own cars. The company brings together those needing rides and contract drivers with their own cars who want to earn extra money.
Uber is also a leader in the delivery business. Indeed, the delivery service Uber Eats lags DoorDash in the U.S. However, its mobility revenue exceeds DoorDash's overall revenue, implying Uber is the global delivery leader.
Together, those two segments made up 89% of Uber's revenue in the first nine months of 2025, and the freight segment accounts for the remainder of its revenue. While this part of the company has not been as successful, it has not negated Uber's other successes.
2. The financials
Moreover, Grand View Research forecasts a compound annual growth rate (CAGR) of 14% for rideshare and a 9% CAGR for food delivery through 2030.
Uber seems to have outperformed those expectations. It generated nearly $38 billion in revenue in the first three quarters of 2025, an 18% increase compared to the same period in 2024.
Uber also controlled its expense growth during that time, and also benefited from a one-time, $4.3 billion tax benefit. That means net income for the first nine months of 2025 was $9.8 billion, far above the $3.0 billion reported in the same year-ago period. Fortunately, that still amounts to a considerable profit increase even without the tax benefit.
Amid improvements, Uber's stock rose by about 35% over the last year.
NYSE: UBER
Key Data Points
As for its valuation, the aforementioned tax benefit helped take its price-to-earnings (P/E) ratio down to 11. Nonetheless, its forward P/E, which excludes one-time benefits, is just 13. This implies investors are not fully appreciating Uber's value or growth potential, possibly pointing to an opportunity for prospective shareholders.
3. Uber's role in autonomous driving
That potential may receive more appreciation once investors understand its growing role in autonomous driving.
The company has partnered with companies such as GM, Volkswagen, and Alphabet's Waymo in this industry. These companies likely do not have the resources to build their own rideshare platform.
To this end, they can partner with Uber to match passengers with vehicles. This allows the companies to develop and refine self-driving technologies while Uber takes care of finding business for them.
As more passengers take advantage of this service, Uber benefits from a new line of business, one that could potentially drive ever-higher revenues in the coming years.
Investing in Uber
Ultimately, Uber is in a strong position to benefit from its market leadership, growing profitability, and its future in autonomous driving.
These tailwinds have helped to boost Uber stock and may for a long time to come. Additionally, its forward P/E ratio of 13 implies that investors do not yet understand its potential as well as they should.
Assuming autonomous driving becomes a new source of revenue, and more investors realize Uber's potential, the rideshare giant's numerous tailwinds could bring shareholders outsized gains in the coming years.
