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Uber to Buy Parking Startup SpotHero? More Upside in Store

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Key Takeaways

  • UBER is reportedly in talks to acquire parking app SpotHero, expanding its service offerings.
  • SpotHero would let UBER offer reserved parking in 400 North American cities.
  • UBER continues diversifying with deals like ALDI on Uber Eats and last year's Dantaxi acquisition.

Per The Information, as cited in a SiliconANGLE report, Uber Technologies (UBER - Free Report) is in talks to acquire parking startup SpotHero.  The purchase price is yet to be disclosed. In the event of the acquisition of the parking app materializing, Uber will be able to offer drivers reserved parking.

SpotHero offers an app that enables users to reserve parking spaces in more than 400 North American cities. SpotHero, founded in 2011, is currently valued at around $290 million. In the event of Uber’s SpotHero acquisition materializing, the former will be expanding its revenue stream beyond ride-hailing.

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. 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’s acquisition of Dantaxi last year has created the leading mobility platform in Denmark.

Price Performance, Valuation and Estimates

Shares of UBER have gained 26.5%  in a year compared with the Zacks Internet-Services industry’s 58.9% growth in the same timeframe. Uber’s shares have also lagged those of rival Lyft (LYFT - Free Report) and fellow industry operator DoorDash (DASH - Free Report) .

1-Year Price Comparison

Zacks Investment ResearchImage Source: Zacks Investment Research

From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 2.82X. UBER is inexpensive compared with its industry and DoorDash. Lyft’s shares are cheaper. Uber, Lyft and DoorDash have a Value Score of C, B and F, respectively.

UBER’s P/S F12M Versus Industry, LYFT & DASH

Zacks Investment ResearchImage Source: Zacks Investment Research

The Zacks Consensus Estimate for UBER’s fourth-quarter 2025, first-quarter 2026, full-year 2025 and 2026 earnings have moved north 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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