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Should You Buy UBER Stock Following Its AV Expansion in the UAE?
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Key Takeaways
UBER launched commercial robotaxi rides in Dubai via a partnership with WeRide and local authorities.
This marks UBER's second AV rollout in the UAE and expands its global autonomous transport footprint.
UBER posted 21% growth in total gross bookings in 3Q25, with strong gains in the Mobility and Delivery units.
Earlier this month, Uber Technologies (UBER - Free Report) launched robotaxi passenger rides in Dubai on the Uber app, teaming up with WeRide (WRD - Free Report) , a Chinese autonomous vehicle company, for the purpose. The companies partnered with Dubai’s Roads and Transport Authority to launch the Dubai robotaxi service.
Following the launch, WeRide robotaxis are accessible through the Uber app in areas including Umm Suqeim and Jumeirah, two of Dubai’s most popular tourist districts near public beaches, and will be available to all riders. The launch followed a pilot program and testing phase that was announced in April. Dubai is home to more than 4 million people, establishing it as one of the region’s fastest-growing metropolitan centers. Naturally, the decision to launch in the city, boasting such a high population, is a prudent move.
Uber and WeRide’s robotaxi launch in Dubai follows that in another UAE city, Abu Dhabi, last month. The rollout is the first commercial driverless robotaxi offering in the Middle East. In the United States, Uber already provides robotaxi access in Austin, Phoenix and Atlanta via Alphabet’s (GOOGL - Free Report) Waymo network. Alphabet’s Waymo is a force to be reckoned with in the evolving and lucrative space. Alphabet, through its Waymo arm, already has commercial operations in several cities across the United States.
Following the launch in Abu Dhabi, customers requesting UberX or Uber Comfort may be assigned a WeRide autonomous vehicle. For Uber, this deployment strengthens its position as a global marketplace for autonomous transportation. Driverless supply can reduce long-term trip costs, improve reliability during peak demand and offer a repeatable model for integrating more AV partners in new cities, expanding Uber’s reach. The launches in Abu Dhabi and Dubai are steps toward turning robotaxis from a futuristic concept into a global transportation reality.
In the AV space, Uber is pursuing a partnership-driven strategy to capture opportunities in the emerging robotaxi market. By collaborating with multiple technology leaders, Uber has avoided the heavy R&D expenses tied to in-house AV development while still advancing its automation goals. The global AV market has huge potential and according to Statista, it could rise from about $106 billion in 2021 to more than $2.3 trillion by 2030.
Apart from its AV ambitions, other factors are working in favor of Uber. Let’s have a look.
Gross Bookings Growth: Uber continues to gain from robust growth in gross bookings, with both its mobility and delivery segments posting strong double-digit increases. This reflects sustained demand for the company’s services. With economic activities normalized in the post-pandemic scenario, people are traveling to work and other places as before. As a result, UBER’s Mobility business has been seeing buoyant demand, with segmental revenues increasing 20% year over year on a reported basis and 18% on a constant currency basis to $7.68 billion in the September quarter.
With customer traffic picking up, gross bookings from the unit were highly impressive, aiding the third-quarter results. Gross bookings from the Mobility segment in the September quarter increased 19% year over year on a constant-currency basis to $25.1 billion.
Uber’s Delivery business also performed well in the quarter, with segmental revenues growing 27% year over year on a constant-currency basis. Gross bookings from the Delivery segment in the September quarter rose 24% year over year on a constant-currency basis to $23.3 billion. Total gross bookings jumped 21% to $48.7 billion.
Uber expects fourth-quarter 2025 gross bookings in the $52.25-$53.75 billion range, representing growth of 17% to 21% year over year on a constant currency basis. Our estimate is currently pegged at $52.38 billion.
Commendable Expansion Efforts: Even though Uber’s primary business is ridesharing, it has diversified into food delivery and freight over time. Diversification is imperative for big companies to reduce risks and UBER has excelled in this area. The company is looking to strengthen its Uber Eats platform and has inked multiple deals recently on that front.
Earlier, Uber announced a nationwide partnership with ALDI, America’s fastest-growing grocer. Following the deal, ALDI’s much sought-after selection of fresh and affordable products will be available on Uber Eats. With more than 2,500 ALDI stores joining the platform, customers can have groceries delivered directly to their doorstep either on demand or through scheduled orders with just a tap.
UBER Shares Cheap: The stock is undervalued compared with the Zacks Internet-Services industry. It is currently trading at a price-to-sales multiple of 2.76, lower than the industry average of 7.22.
Image Source: Zacks Investment Research
Some Headwinds That Cannot be Ignored
Unimpressive Price Performance: Mainly due to tariff-related uncertainties, shares of Uber have lagged its industry and rival Lyft (LYFT - Free Report) over the past year. Lyft’s share price performance is also lagging that of the industry.
1-Year Price Comparison
Image Source: Zacks Investment Research
Uber’s High Debt Load: We are also concerned about UBER’s high debt levels despite efforts to reduce them. The company’s times interest earned ratio was 15.5 at the end of the third quarter of 2025, much lower than industrial levels. A lower times interest earned ratio often means that a company faces a greater risk of defaulting on its debt obligations. This implies serious financial problems.
Long-Term Debt to Capitalization
Image Source: Zacks Investment Research
Here's How to Play UBER Stock Now
Uber is experiencing increasing demand across its ridesharing and delivery platforms. This rising popularity, along with ongoing growth initiatives and a firm commitment to cost efficiency, is contributing to the company’s strong business performance. The company’s AV-related ambitions are also highly praiseworthy.
Given the multiple positives working in the company’s favor, existing investors are encouraged to hold onto their UBER shares to capitalize on its long-term fundamentals. However, potential investors may consider waiting for a more attractive entry point, given the unimpressive price performance and debt levels above the industry average.
Image: Bigstock
Should You Buy UBER Stock Following Its AV Expansion in the UAE?
Key Takeaways
Earlier this month, Uber Technologies (UBER - Free Report) launched robotaxi passenger rides in Dubai on the Uber app, teaming up with WeRide (WRD - Free Report) , a Chinese autonomous vehicle company, for the purpose. The companies partnered with Dubai’s Roads and Transport Authority to launch the Dubai robotaxi service.
Following the launch, WeRide robotaxis are accessible through the Uber app in areas including Umm Suqeim and Jumeirah, two of Dubai’s most popular tourist districts near public beaches, and will be available to all riders. The launch followed a pilot program and testing phase that was announced in April. Dubai is home to more than 4 million people, establishing it as one of the region’s fastest-growing metropolitan centers. Naturally, the decision to launch in the city, boasting such a high population, is a prudent move.
Uber and WeRide’s robotaxi launch in Dubai follows that in another UAE city, Abu Dhabi, last month. The rollout is the first commercial driverless robotaxi offering in the Middle East. In the United States, Uber already provides robotaxi access in Austin, Phoenix and Atlanta via Alphabet’s (GOOGL - Free Report) Waymo network. Alphabet’s Waymo is a force to be reckoned with in the evolving and lucrative space. Alphabet, through its Waymo arm, already has commercial operations in several cities across the United States.
Following the launch in Abu Dhabi, customers requesting UberX or Uber Comfort may be assigned a WeRide autonomous vehicle. For Uber, this deployment strengthens its position as a global marketplace for autonomous transportation. Driverless supply can reduce long-term trip costs, improve reliability during peak demand and offer a repeatable model for integrating more AV partners in new cities, expanding Uber’s reach. The launches in Abu Dhabi and Dubai are steps toward turning robotaxis from a futuristic concept into a global transportation reality.
In the AV space, Uber is pursuing a partnership-driven strategy to capture opportunities in the emerging robotaxi market. By collaborating with multiple technology leaders, Uber has avoided the heavy R&D expenses tied to in-house AV development while still advancing its automation goals. The global AV market has huge potential and according to Statista, it could rise from about $106 billion in 2021 to more than $2.3 trillion by 2030.
Apart from its AV ambitions, other factors are working in favor of Uber. Let’s have a look.
Gross Bookings Growth: Uber continues to gain from robust growth in gross bookings, with both its mobility and delivery segments posting strong double-digit increases. This reflects sustained demand for the company’s services. With economic activities normalized in the post-pandemic scenario, people are traveling to work and other places as before. As a result, UBER’s Mobility business has been seeing buoyant demand, with segmental revenues increasing 20% year over year on a reported basis and 18% on a constant currency basis to $7.68 billion in the September quarter.
With customer traffic picking up, gross bookings from the unit were highly impressive, aiding the third-quarter results. Gross bookings from the Mobility segment in the September quarter increased 19% year over year on a constant-currency basis to $25.1 billion.
Uber’s Delivery business also performed well in the quarter, with segmental revenues growing 27% year over year on a constant-currency basis. Gross bookings from the Delivery segment in the September quarter rose 24% year over year on a constant-currency basis to $23.3 billion. Total gross bookings jumped 21% to $48.7 billion.
Uber expects fourth-quarter 2025 gross bookings in the $52.25-$53.75 billion range, representing growth of 17% to 21% year over year on a constant currency basis. Our estimate is currently pegged at $52.38 billion.
Commendable Expansion Efforts: Even though Uber’s primary business is ridesharing, it has diversified into food delivery and freight over time. Diversification is imperative for big companies to reduce risks and UBER has excelled in this area. The company is looking to strengthen its Uber Eats platform and has inked multiple deals recently on that front.
Earlier, Uber announced a nationwide partnership with ALDI, America’s fastest-growing grocer. Following the deal, ALDI’s much sought-after selection of fresh and affordable products will be available on Uber Eats. With more than 2,500 ALDI stores joining the platform, customers can have groceries delivered directly to their doorstep either on demand or through scheduled orders with just a tap.
UBER Shares Cheap: The stock is undervalued compared with the Zacks Internet-Services industry. It is currently trading at a price-to-sales multiple of 2.76, lower than the industry average of 7.22.
Some Headwinds That Cannot be Ignored
Unimpressive Price Performance: Mainly due to tariff-related uncertainties, shares of Uber have lagged its industry and rival Lyft (LYFT - Free Report) over the past year. Lyft’s share price performance is also lagging that of the industry.
1-Year Price Comparison
Uber’s High Debt Load: We are also concerned about UBER’s high debt levels despite efforts to reduce them. The company’s times interest earned ratio was 15.5 at the end of the third quarter of 2025, much lower than industrial levels. A lower times interest earned ratio often means that a company faces a greater risk of defaulting on its debt obligations. This implies serious financial problems.
Long-Term Debt to Capitalization
Here's How to Play UBER Stock Now
Uber is experiencing increasing demand across its ridesharing and delivery platforms. This rising popularity, along with ongoing growth initiatives and a firm commitment to cost efficiency, is contributing to the company’s strong business performance. The company’s AV-related ambitions are also highly praiseworthy.
Given the multiple positives working in the company’s favor, existing investors are encouraged to hold onto their UBER shares to capitalize on its long-term fundamentals. However, potential investors may consider waiting for a more attractive entry point, given the unimpressive price performance and debt levels above the industry average.
Uber currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.