Exploring Uber’s path from mobility giant to profit powerhouse

Certain companies have become ubiquitous to everyday life – even to the extent of inventing new verbs that we use all the time.

For example: “Google it” or “Ask ChatGPT” or even “why don’t you just UBER”. Most people on the planet have used Uber – some use it every day of their lives especially of course in big cities.

Consider the following:

• Uber is available in more than 10 000 cities
• Uber will make 14 billion trips in the next 12 months
• Uber has 180 million active monthly users
• Uber has 8.8 million drivers

Uber has strong operational execution and a dominant market share in both the mobility and delivery segments. The company has expanding margins and profitability — confirmed in its Q2 2025 earnings release.

Uber also leads the ride sharing market with a 74% share of the market in the United States and Uber Eats has 24% market share of food delivery platforms. There are several key growth drivers.

The unstoppable rise

Uber’s market dominance is a very powerful moat, attracting more drivers and more customers which leads to a further strengthening of the platform. The delivery segment has now achieved break-even and is growing rapidly. Margins continue to expand.

An important factor is the management of the transition to autonomous vehicles. Remember that Uber’s biggest cost is driver salaries. There is serious blue sky potential if these costs can be reduced. In 2025, Uber deepened its partnership with Waymo — autonomous rides in the Uber app launched in Austin and Atlanta — a major step toward cost-efficient robotaxi operations.

Uber is also a great beneficiary of AI (artificial intelligence) as the gap between what users are prepared to pay and what drivers are prepared to accept lends itself to special algorithms which dramatically improves profitability.

Sustained profitability and shareholder rewards

Uber’s sustained profitability and free cash flow cannot be over-emphasised. It is also embarking on one of the largest share-buyback programmes on the market — including a recent $1.5 billion accelerated share repurchase (ASR). This means the shares are literally a “collector’s item”.

In my opinion the shares are substantially undervalued and should be bought at these levels.

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If you are not happy with your portfolio performance or would like a second opinion, please do not hesitate to contact Fenestra for a free, independent, objective and confidential review of your portfolio. William Meyer – 0796244031