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UBER Expands Retail Reach With DLTR Deal: Growth Thesis Strengthening?

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Key Takeaways

  • Uber partnered with Dollar Tree, bringing almost 9,000 new stores to the Uber Eats platform.
  • The deal follows Uber's earlier tie-up with Dollar General, adding 14,000 store locations.
  • Delivery revenues rose 25% year over year in Q2 2025, reaching $4.10 billion.

Uber Technologies (UBER - Free Report) inked a deal with value retailer Dollar Tree (DLTR - Free Report) . The deal was in line with its efforts to expand service offerings, particularly in suburban and rural America. This has enhanced UBER’s retail delivery capabilities by adding nearly 9,000 stores to the Uber Eats platform. Uber Eats is the online food ordering and delivery platform of Uber.

The partnership ensures that customers across states can now easily access affordable items of everyday use, ranging from party supplies to cosmetics and home essentials for on-demand delivery. To celebrate the arrival of the discount giant on the Uber Eats platform, it is offering $10 off on Dollar Tree orders of $30 or more. 

Uber One members get free delivery on eligible orders and other benefits. Expressing delight at the tie-up, Hashim Amin, the head of Uber’s grocery & retail, said, “Whether it’s last-minute gift wrap, a birthday balloon, classroom supplies, or your go-to snacks, Dollar Tree delivers real value and convenience. We’re proud to partner with Dollar Tree to bring their unique offering to Uber Eats, helping customers save valuable time and money.”

The association with Dollar Tree comes close on the heels of Uber’s deal with another discount retailer, Dollar General (DG - Free Report) . The tie-up ensured that more than 14,000 locations of Dollar General arrived on the Uber Eats platform. Following the association with Dollar General, launched on Aug. 8, customers can use the Uber Eats app to order food, beverages and other essentials.

The above deals with the discount retailers are in sync with Uber’s efforts to grow its user base and diversify product offerings. Diversification is imperative for big companies to reduce risks and UBER has excelled in this respect. Even though Uber’s primary business is ridesharing, it has diversified into food delivery over time. Revenues from the Delivery segment increased 25% year over year on a reported basis and 23% on a constant currency basis to $4.10 billion in the second quarter of 2025.

Even after economies reopened, the habit of placing orders online stayed among people driven by the associated convenience. Encouraged by the upbeat performance of the segment, Uber is making constant efforts to expand its Delivery operations.

UBER’s Share Price Performance, Valuation and Estimates

Shares of UBER have gained in double digits so far this year despite the tariff-related uncertainty. Courtesy of the upbeat performance,

UBER’s shares have handily outperformed the Zacks Internet-Services industry on a year-to-date basis.

Zacks Investment ResearchImage Source: Zacks Investment Research

From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 3.53X. UBER is inexpensive compared with its industry.

The Zacks Consensus Estimate for the third quarter, the fourth quarter, full-year 2025 and full-year 2026 have remained stable over the past seven 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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