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UBER Expands Mastercard Deal: Is the Growth Story Strengthening?

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Key Takeaways

  • Uber expands Mastercard deal to improve payments for drivers, couriers and consumers.
  • Tools like Mastercard Move and Gateway enhance efficiency and security.
  • Uber Pro Card expands beyond the U.S. and Canada, adding the UK for instant payouts.

In a customer-friendly move, Uber Technologies (UBER - Free Report) expanded its deal with Mastercard (MA - Free Report) . The extended global deal aims to streamline payment processes for drivers, couriers and consumers while enhancing benefits for cardholders. The expanded partnership with Mastercard offers Uber significant benefits, strengthening operational efficiency and enhancing its appeal to both drivers and customers.

As part of the renewed collaboration, Uber will integrate multiple Mastercard products and services. These include Mastercard Move for real-time payouts, Mastercard One Credential to simplify payment experiences and Mastercard Gateway to streamline collections and support secure business operations.

The Uber Pro Card, already available in the United States and Canada, has been renewed in these markets and will expand to new regions such as the United Kingdom. This card allows drivers and couriers to receive instant, no-cost payments after each trip or delivery, along with benefits like cash-back rewards on fuel purchases.

These benefits associated with the expanded deal with Mastercard provide enhanced value for Uber’s global user base, all while supporting the ride-hailing giant’s growth. We believe that the collaboration represents another step to further Uber’s growth by improving payment experiences, expanding geographic reach and reinforcing loyalty among its driver and rider base.

Expressing delight at the deepening of the collaboration, Karl Hebert, Uber's vice president of global commerce stated: “At the heart of this partnership is a desire to grow benefits for all our mutual customers, be it the businesses that rely on Uber to earn each day, or those using the platform to Go Anywhere and Get Anything.”

Taking a Look at LYFT’s Association With MA

Uber’s rival in the ride-hailing market, Lyft (LYFT - Free Report) , too, has an association with Mastercard. The tie-up aims at providing benefits to both Lyft drivers and riders. The benefits include the Lyft Direct debit card for drivers. This facilitates instant payouts and other benefits, as well as rewards and promotions for riders using Mastercard when paying for Lyft rides.

The Lyft-Mastercard association extends to Bay Wheels. This move allows users to earn and save with their Mastercard when paying for Lyft rides, including Bay Wheels, a public bike-sharing system in the Bay Area with a large number of bikes and stations. The Bay Wheels system is operated and managed by Lyft. It is accessible through the Lyft app.

Uber’s Price Performance, Valuation and Estimates

Shares of UBER have gained 50.2% so far this year compared with the Zacks Internet-Services industry’s 3.8% rise in the same timeframe.

YTD Price Comparison

Zacks Investment ResearchImage Source: Zacks Investment Research

From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 3.43X. UBER is inexpensive compared with its industry.

Zacks Investment ResearchImage Source: Zacks Investment Research

The Zacks Consensus Estimate for UBER’s 2025 and 2026 earnings has been revised upward over the past 60 days.

Zacks Investment ResearchImage Source: Zacks Investment Research

UBER's Zacks Rank

UBER currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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