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Is UBER Stock a Buy as It Closes in on Delivery Hero Buyout?
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Key Takeaways
Uber's Delivery Hero deal could expand markets offering both mobility and delivery services from 34 to 58.
UBER posted Q2 gross bookings above $58B, up 22% at constant currency, its fourth straight quarter over 20%.
Uber's debt, weak share performance and expected 2026 EPS y/y fall support waiting for a better entry point.
Uber Technologies (UBER - Free Report) moved a step closer to acquiring Delivery Hero when the latter’s board recommended that shareholders accept its offer. The board recently issued a statement terming Uber’s offer "fair and adequate." The acceptance period for the takeover offer ends on Nov. 5, 2026.
Under the takeover offer, Uber will pay €41.50 per Delivery Hero share, valuing the latter at approximately $14.8 billion, or $13.7 billion after adjusting for the former's existing stake. Before the offer, Uber owned about 24.77% of Delivery Hero's voting shares and had an additional 11.74% economic exposure through equity derivatives. Prosus has agreed to tender its roughly 17% stake, raising Uber's total economic interest to about 53%. The takeover would significantly increase the number of markets where Uber can offer both mobility and delivery services from 34 to 58.
Uber expects the acquisition to strengthen the global technology platform by combining it with Delivery Hero's established local brands, merchant network and delivery capabilities. The combined business is anticipated to enhance consumer choice, improve the Uber One membership proposition and provide merchants with greater demand through Uber's large user base, supported by advertising, promotional and commerce tools. AUber is denser network is also expected to increase order volumes, improve courier utilization and create additional earning opportunities for delivery partners and drivers.
With Uber’s impending acquisition of Delivery Hero taking a major step toward completion, the question is whether it is worth buying UBER stock at current prices. Let us dig deeper to find out.
Further Factors Working in Favor of UBER
AV Ambitions Gain Pace: Uber is looking to establish a strong foothold in the lucrative robotaxi space through a partnership-focused approach. To this end, it has recently inked many deals. Earlier this month, Uber and British AI company Wayve have launched supervised autonomous rides in London, making such trips available in the United Kingdom for the first time. Londoners requesting UberX, Uber Electric or Uber Comfort may now be matched with a Wayve vehicle at no additional cost, with fares displayed upfront in the Uber app.
In June, Uber, in collaboration with WeRide (WRD - Free Report) , a Chinese autonomous vehicle company, announced plans to introduce commercial robotaxi services in the Greater Zurich Region. This move represents their second joint deployment in Europe, coming just weeks after the announcement of a similar initiative in Madrid. The service is expected to commence later this year in partnership with Switzerland’s Federal Roads Office, pending regulatory approvals. At launch, passengers will be able to access the robotaxi service through the Uber app. The launch builds on the partners’ growing track record in autonomous mobility.
Since December 2024, WeRide and Uber have introduced robotaxi services across several Middle Eastern markets, including fully driverless commercial operations in Abu Dhabi and Dubai, as well as public services in Riyadh. These deployments provide an operational foundation for their European expansion.
Last month, Uber announced that another Chinese company, Baidu (BIDU - Free Report) , has made its fully autonomous Apollo Go vehicles are available to riders through the former’s platform in Dubai, with New Horizon Luxury Transport operating the fleet. The rollout strengthens Uber’s position in the autonomous-vehicle market and represents an important step in the global expansion of driverless transportation.
Dubai is the first launch location under the companies’ multi-year strategic partnership, which aims to deploy thousands of Apollo Go vehicles of Baidu across Uber’s worldwide network. Uber emphasized that safety remains a central priority. Baidu’s Apollo Go vehicles, like all autonomous vehicles operating through Uber’s network, must comply with its safety guidelines before entering service.
Uber’s dominant market share in the ride-hailing industry also gives it a unique advantage. With its vast network of drivers and customers, Uber can quickly scale autonomous services once the technology matures. Its app is designed to integrate AVs from multiple partners, giving users a variety of options.
Gross Bookings Growth: Uber continues to benefit from robust growth in gross bookings. The company has been recording solid double-digit growth in gross bookings across both its mobility and delivery businesses.
In the second quarter of 2026, gross bookings grew 22% on a constant currency basis year on year to more than $58 billion, above the high end of the company’s guidance and marking the fourth consecutive quarter above 20% growth for this key metric. Trips also accelerated with results benefiting from travel linked to the FIFA World Cup.
Segment-wise, Mobility bookings rose 22% year over year on a reported basis and 20% on a constant currency basis to $28.98 billion, supported by continued demand for rides across Uber’s global platform. Uber’s ride-hailing business benefited from the mega event with millions of tourists taking rides across host cities in the United States, Canada and Mexico.
Delivery gross bookings increased 26% year over year on a reported basis and 25% on a constant currency basis to $27.46 billion, while Freight bookings increased 25% year over year on a reported basis as well as on a constant currency basis to $1.57 billion. Growth across all three offerings demonstrated the breadth of the company’s platform during the quarter.
For the third quarter, Uber expects gross bookings in the band of $58.25-$60.25 billion. The mid-point of the guided range is roughly in line with the Zacks Consensus Estimate of $59.2 billion.
Continued expansion in gross bookings strengthens Uber’s revenue base, improves operating leverage across its platform and deepens network effects among riders, drivers and merchants. This momentum not only supports revenue growth but also enhances the company’s long-term profitability potential by enabling fixed costs to be distributed more efficiently across a larger transaction base.
Earnings History: Uber’s earnings have outpaced the Zacks Consensus Estimate in three of the past four quarters, missing the mark on the other occasion. The average beat is 99.5%.
Growth Opportunity for UBER Is Real, but so Are the Risks
Agreed that Uber is benefiting from its AV-related ambitions and gross booking strength. The acquisition of Delivery Hero, if it materializes, would lead to significant expansion for Uber. However, investors should remember that it is facing some headwinds that cannot be ignored.
UBER’s financial metrics indicate that its leverage is elevated and is a massive negative for its shareholders. The long-term debt burden of the company stood at $10.7 billion at the end of the second quarter of 2026, which translates into a long-term debt-to-capitalization of 27.9%. This is reasonable but above the Zacks Internet-Services industry’s 11.8%. UBER’s times interest earned ratio at the June quarter-end was 15.5, which is much lower than its industry, indicating a high risk of default.
Shares of Uber have declined in single digits (% wise) so far this year, underperforming the Zacks Internet-Services industry as well as the S&P 500 index.
YTD Price Comparison
Image Source: Zacks Investment Research
What Do Estimates Suggest for Uber?
The Zacks Consensus Estimate for 2026 earnings implies a year-over-year decline of approximately 35%, while 11% growth is indicated in terms of revenues. However, the earnings estimate revision trend is impressive. Earnings per share estimate projections for the current and next quarter, and full-year 2026 and 2027 have improved over the past 60 days.
Image Source: Zacks Investment Research
How to Play UBER Stock Currently?
While Uber’s weak stock performance, high debt load, labor unrest and geopolitical woes present near-term challenges, the long-term outlook for the ride-hailing giant remains far from discouraging.
The company’s strategic diversification, AV focus and shareholder-focused initiatives continue to serve as key strengths. With a market capitalization of $154.74 billion, Uber remains well positioned to navigate economic uncertainties. Uber’s ongoing commitment to diversification — through acquisitions, geographic expansion and innovative product offerings — has helped reduce risks and reinforce its competitive standing.
Overall, Uber’s scale, strategic investments and diversification efforts provide a strong foundation for sustained long-term growth. Despite the recent unfavorable price performance, maintaining a position in this Zacks Rank #3 (Hold) stock appears to be a sensible approach for now, while potential investors may prefer to wait for a more attractive entry point.
View the Zacks #1 Rank List
Image: Bigstock
Is UBER Stock a Buy as It Closes in on Delivery Hero Buyout?
Key Takeaways
Uber Technologies (UBER - Free Report) moved a step closer to acquiring Delivery Hero when the latter’s board recommended that shareholders accept its offer. The board recently issued a statement terming Uber’s offer "fair and adequate." The acceptance period for the takeover offer ends on Nov. 5, 2026.
Under the takeover offer, Uber will pay €41.50 per Delivery Hero share, valuing the latter at approximately $14.8 billion, or $13.7 billion after adjusting for the former's existing stake. Before the offer, Uber owned about 24.77% of Delivery Hero's voting shares and had an additional 11.74% economic exposure through equity derivatives. Prosus has agreed to tender its roughly 17% stake, raising Uber's total economic interest to about 53%. The takeover would significantly increase the number of markets where Uber can offer both mobility and delivery services from 34 to 58.
Uber expects the acquisition to strengthen the global technology platform by combining it with Delivery Hero's established local brands, merchant network and delivery capabilities. The combined business is anticipated to enhance consumer choice, improve the Uber One membership proposition and provide merchants with greater demand through Uber's large user base, supported by advertising, promotional and commerce tools. AUber is denser network is also expected to increase order volumes, improve courier utilization and create additional earning opportunities for delivery partners and drivers.
With Uber’s impending acquisition of Delivery Hero taking a major step toward completion, the question is whether it is worth buying UBER stock at current prices. Let us dig deeper to find out.
Further Factors Working in Favor of UBER
AV Ambitions Gain Pace: Uber is looking to establish a strong foothold in the lucrative robotaxi space through a partnership-focused approach. To this end, it has recently inked many deals. Earlier this month, Uber and British AI company Wayve have launched supervised autonomous rides in London, making such trips available in the United Kingdom for the first time. Londoners requesting UberX, Uber Electric or Uber Comfort may now be matched with a Wayve vehicle at no additional cost, with fares displayed upfront in the Uber app.
In June, Uber, in collaboration with WeRide (WRD - Free Report) , a Chinese autonomous vehicle company, announced plans to introduce commercial robotaxi services in the Greater Zurich Region. This move represents their second joint deployment in Europe, coming just weeks after the announcement of a similar initiative in Madrid. The service is expected to commence later this year in partnership with Switzerland’s Federal Roads Office, pending regulatory approvals. At launch, passengers will be able to access the robotaxi service through the Uber app. The launch builds on the partners’ growing track record in autonomous mobility.
Since December 2024, WeRide and Uber have introduced robotaxi services across several Middle Eastern markets, including fully driverless commercial operations in Abu Dhabi and Dubai, as well as public services in Riyadh. These deployments provide an operational foundation for their European expansion.
Last month, Uber announced that another Chinese company, Baidu (BIDU - Free Report) , has made its fully autonomous Apollo Go vehicles are available to riders through the former’s platform in Dubai, with New Horizon Luxury Transport operating the fleet. The rollout strengthens Uber’s position in the autonomous-vehicle market and represents an important step in the global expansion of driverless transportation.
Dubai is the first launch location under the companies’ multi-year strategic partnership, which aims to deploy thousands of Apollo Go vehicles of Baidu across Uber’s worldwide network. Uber emphasized that safety remains a central priority. Baidu’s Apollo Go vehicles, like all autonomous vehicles operating through Uber’s network, must comply with its safety guidelines before entering service.
Uber’s dominant market share in the ride-hailing industry also gives it a unique advantage. With its vast network of drivers and customers, Uber can quickly scale autonomous services once the technology matures. Its app is designed to integrate AVs from multiple partners, giving users a variety of options.
Gross Bookings Growth: Uber continues to benefit from robust growth in gross bookings. The company has been recording solid double-digit growth in gross bookings across both its mobility and delivery businesses.
In the second quarter of 2026, gross bookings grew 22% on a constant currency basis year on year to more than $58 billion, above the high end of the company’s guidance and marking the fourth consecutive quarter above 20% growth for this key metric. Trips also accelerated with results benefiting from travel linked to the FIFA World Cup.
Segment-wise, Mobility bookings rose 22% year over year on a reported basis and 20% on a constant currency basis to $28.98 billion, supported by continued demand for rides across Uber’s global platform. Uber’s ride-hailing business benefited from the mega event with millions of tourists taking rides across host cities in the United States, Canada and Mexico.
Delivery gross bookings increased 26% year over year on a reported basis and 25% on a constant currency basis to $27.46 billion, while Freight bookings increased 25% year over year on a reported basis as well as on a constant currency basis to $1.57 billion. Growth across all three offerings demonstrated the breadth of the company’s platform during the quarter.
For the third quarter, Uber expects gross bookings in the band of $58.25-$60.25 billion. The mid-point of the guided range is roughly in line with the Zacks Consensus Estimate of $59.2 billion.
Continued expansion in gross bookings strengthens Uber’s revenue base, improves operating leverage across its platform and deepens network effects among riders, drivers and merchants. This momentum not only supports revenue growth but also enhances the company’s long-term profitability potential by enabling fixed costs to be distributed more efficiently across a larger transaction base.
Earnings History: Uber’s earnings have outpaced the Zacks Consensus Estimate in three of the past four quarters, missing the mark on the other occasion. The average beat is 99.5%.
Uber Technologies Price and EPS Surprise
Uber Technologies price-eps-surprise | Uber Technologies Quote
Growth Opportunity for UBER Is Real, but so Are the Risks
Agreed that Uber is benefiting from its AV-related ambitions and gross booking strength. The acquisition of Delivery Hero, if it materializes, would lead to significant expansion for Uber. However, investors should remember that it is facing some headwinds that cannot be ignored.
UBER’s financial metrics indicate that its leverage is elevated and is a massive negative for its shareholders. The long-term debt burden of the company stood at $10.7 billion at the end of the second quarter of 2026, which translates into a long-term debt-to-capitalization of 27.9%. This is reasonable but above the Zacks Internet-Services industry’s 11.8%. UBER’s times interest earned ratio at the June quarter-end was 15.5, which is much lower than its industry, indicating a high risk of default.
Shares of Uber have declined in single digits (% wise) so far this year, underperforming the Zacks Internet-Services industry as well as the S&P 500 index.
YTD Price Comparison
What Do Estimates Suggest for Uber?
The Zacks Consensus Estimate for 2026 earnings implies a year-over-year decline of approximately 35%, while 11% growth is indicated in terms of revenues. However, the earnings estimate revision trend is impressive. Earnings per share estimate projections for the current and next quarter, and full-year 2026 and 2027 have improved over the past 60 days.
How to Play UBER Stock Currently?
While Uber’s weak stock performance, high debt load, labor unrest and geopolitical woes present near-term challenges, the long-term outlook for the ride-hailing giant remains far from discouraging.
The company’s strategic diversification, AV focus and shareholder-focused initiatives continue to serve as key strengths. With a market capitalization of $154.74 billion, Uber remains well positioned to navigate economic uncertainties. Uber’s ongoing commitment to diversification — through acquisitions, geographic expansion and innovative product offerings — has helped reduce risks and reinforce its competitive standing.
Overall, Uber’s scale, strategic investments and diversification efforts provide a strong foundation for sustained long-term growth. Despite the recent unfavorable price performance, maintaining a position in this Zacks Rank #3 (Hold) stock appears to be a sensible approach for now, while potential investors may prefer to wait for a more attractive entry point.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.