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Will Uber's Women Preferences Feature Reshape Ride Hailing?

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Key Takeaways

  • Uber expands Women Preferences in the U.S., letting women riders request female drivers.
  • Uber says the feature can improve safety, trust and engagement while attracting more riders and drivers.
  • Lyft faces scrutiny as its Women Connect feature is also tied to a U.S. discrimination lawsuit.

Uber Technologies (UBER - Free Report) has launched a new feature that enables women riders and drivers across the United States to be matched with other women for trips. This initiative expands a pilot program designed to address safety concerns associated with its ride-hailing platform.

The feature allows women passengers to request a female driver through an in-app option called “Women Drivers.” If the waiting time for a female driver is longer than expected, passengers can choose to book another ride. Riders also have the option to reserve trips with female drivers in advance. Additionally, female users can set a preference for a female driver in their app settings, which increases the likelihood of being matched with a female driver, although it does not guarantee the match.

Women drivers can similarly enable a preference to receive ride requests from women riders, giving them greater flexibility and control over how they earn. The feature is also available for teen account users, allowing them to request women drivers.

Uber initially launched the Women Preferences feature in 2019 for female drivers in Saudi Arabia, shortly after women in the country were granted the right to drive. Since then, the program has expanded globally. After facilitating more than 230 million trips worldwide, Women Preferences is now available for drivers in over 40 countries and for riders in cities across seven countries, including the United States, Germany, France, Saudi Arabia, Portugal, Brazil and Spain.

The Women Preferences feature strengthens Uber’s platform by addressing safety concerns and improving trust among users, particularly women riders and drivers. By offering more control and flexibility in ride matching, Uber can attract a broader user base and encourage higher platform engagement. The feature also helps differentiate Uber from competitors by emphasizing safety and inclusivity, which can enhance brand perception and customer loyalty. Over time, increased rider confidence and driver participation could lead to higher trip volumes and improved platform retention, supporting Uber’s long-term growth.

The nationwide rollout of the new feature comes even as Uber faces a class action lawsuit in California challenging the policy, according to an Associated Press report. The case was filed by Uber drivers who claim that the feature discriminates against male drivers.

Uber’s rival Lyft (LYFT - Free Report) is also dealing with a discrimination lawsuit related to a similar feature it launched across the United States in 2024. Lyft’s Women+ Connect feature gives women and nonbinary drivers the option to turn on a preference that will prioritize matches with other nearby women and nonbinary riders. This approach of Lyft ensures that drivers of all genders can continue to maximize their earnings and riders can continue to have short wait times for pickup with well-priced fares.

Another ride-hailing company, Grab (GRAB - Free Report) , has a feature – ‘Women Passengers Preferred’ to promote safety for women driver-partners. This feature at Grab aims to prioritize matches between women drivers and passengers. Grab has also set up women-only onboarding sessions in Singapore, Malaysia, Thailand, Indonesia and the Philippines. 

UBER’s Share Price Performance, Valuation and Estimates

Shares of UBER have declined in double digits over the past six months. Courtesy of the downbeat performance, UBER’s shares have underperformed the Zacks Internet-Services industry over the same time frame.

6- Month Price Comparison

Zacks Investment ResearchImage Source: Zacks Investment Research

From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 2.5X. UBER is inexpensive compared with its industry.

Zacks Investment ResearchImage Source: Zacks Investment Research

The Zacks Consensus Estimate for full-year 2026 and 2027 has declined in the past 30 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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