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UBER or GRAB: Which Ride-Hailing Stock Holds More Promise Now?
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Key Takeaways
Uber's lower sales multiple, stronger price performance and larger scale support its lead in the comparison.
Uber's Q2 gross bookings rose 22% at constant currency to over $58B, marking a fourth 20% growth quarter.
Grab targets $1.7B in 2028, group adjusted EBITDA and more than 30% annual revenue growth through 2028.
Uber Technologies (UBER - Free Report) and Grab (GRAB - Free Report) are prominent ride-hailing companies that have reshaped transportation through their ride-sharing-focused business models.
However, the two companies differ in their geographic presence and strategic focus. Uber operates a global platform, whereas Grab is a leading Southeast Asian “super-app” providing mobility, delivery and digital financial services across eight countries: Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Although ride-sharing remains Uber’s core business, it has diversified over time into food delivery and freight services.
Given these differences in geographic reach and business strategy, a detailed comparison can help determine which company currently holds the stronger position and which stock represents the more attractive investment opportunity.
The Case for UBER Stock
San Francisco-based Uber is benefiting from robust demand across its ridesharing and delivery businesses. Growing platform engagement, new growth initiatives and disciplined cost control are driving strong operating momentum.
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. 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.
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.
The Case for GRAB Stock
Recently, Grab Holdings inked a deal to purchase a controlling 60% equity interest in Atome Financial, the digital financial services platform of Advance Intelligence Group Limited ("AIGL"), for $1.49 billion in cash, out of which $0.26 billion is primary growth capital (Phase 1). The Phase 1 deal is being funded entirely from GRAB’s existing cash.
Subject to regulatory approvals and other customary closing conditions, the deal is anticipated to be completed by the third quarter of 2027. The buyout is anticipated to be accretive to the combined business adjusted Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) post-completion, and will not affect GRAB’s ongoing share repurchase program. Grab plans to complete about $900 million of remaining share repurchases over the next 12 months. The company will fund repurchases from cash reserves, backed by $7.4 billion in gross cash liquidity.
The expanded Financial Services segment is expected to generate $500 million in adjusted EBITDA by 2028. The combined business is expected to have a gross loan portfolio of more than $6 billion by 2028. Grab also raised its broader 2028 targets following the transaction. The company now expects $1.7 billion in Group Adjusted EBITDA by 2028, up from its previous target, while forecasting revenue growth of more than 30% annually from 2025 through 2028.
Apart from the aforesaid deal, Grab has also agreed with AIGL and the other sellers to purchase the remaining 40% equity interest in Atome Financial, almost two years after the completion of this aforesaid deal (Phase 2).
Grab is seeing healthy momentum in On-Demand Gross Merchandise Value, continued fintech expansion and higher user activity across its ecosystem.
GRAB vs. UBER: Price Performance, Earnings Surprise History & Valuation Check
Both GRAB and UBER’s shares have declined over the past six months. However, the fall in GRAB’s shares is much steeper.
6-Month Price Comparison
Image Source: Zacks Investment Research
UBER has outpaced the Zacks Consensus Estimate for earnings in three of the past four quarters (missing the mark once), whereas GRAB has surpassed the consensus mark only once, missing on the other three occasions.
UBER’s Earnings Surprise History
Image Source: Zacks Investment Research
GRAB’s Earnings Surprise History
Image Source: Zacks Investment Research
UBER trades at 2.24X forward 12-month sales, slightly below the 2.36X multiple for GRAB.
Image Source: Zacks Investment Research
Conclusion
Uber’s valuation relative to Grab is clearly appealing. Its ongoing diversification, partnership-driven AV strategy and shareholder-friendly buybacks point to a company in strong financial shape. Uber’s much larger scale (market cap of $144 billion) also gives it greater resilience during uncertain macro periods. The company’s better price performance also works in its favor.
Grab, in contrast, operates within a narrower geographic base, leaving it more exposed to regional downturns. Economic uncertainty across key Southeast Asian markets — caused by inflation, shifting consumer trends and supply-chain challenges — has weighed on performance. The company also faces stiff competition in deliveries.
Based on our analysis, Uber clearly emerges as the winner in this faceoff. Thus, we can safely conclude that UBER has better prospects at present and is a better investment, despite both stocks carrying a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
UBER or GRAB: Which Ride-Hailing Stock Holds More Promise Now?
Key Takeaways
Uber Technologies (UBER - Free Report) and Grab (GRAB - Free Report) are prominent ride-hailing companies that have reshaped transportation through their ride-sharing-focused business models.
However, the two companies differ in their geographic presence and strategic focus. Uber operates a global platform, whereas Grab is a leading Southeast Asian “super-app” providing mobility, delivery and digital financial services across eight countries: Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Although ride-sharing remains Uber’s core business, it has diversified over time into food delivery and freight services.
Given these differences in geographic reach and business strategy, a detailed comparison can help determine which company currently holds the stronger position and which stock represents the more attractive investment opportunity.
The Case for UBER Stock
San Francisco-based Uber is benefiting from robust demand across its ridesharing and delivery businesses. Growing platform engagement, new growth initiatives and disciplined cost control are driving strong operating momentum.
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. 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.
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.
The Case for GRAB Stock
Recently, Grab Holdings inked a deal to purchase a controlling 60% equity interest in Atome Financial, the digital financial services platform of Advance Intelligence Group Limited ("AIGL"), for $1.49 billion in cash, out of which $0.26 billion is primary growth capital (Phase 1). The Phase 1 deal is being funded entirely from GRAB’s existing cash.
Subject to regulatory approvals and other customary closing conditions, the deal is anticipated to be completed by the third quarter of 2027. The buyout is anticipated to be accretive to the combined business adjusted Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) post-completion, and will not affect GRAB’s ongoing share repurchase program. Grab plans to complete about $900 million of remaining share repurchases over the next 12 months. The company will fund repurchases from cash reserves, backed by $7.4 billion in gross cash liquidity.
The expanded Financial Services segment is expected to generate $500 million in adjusted EBITDA by 2028. The combined business is expected to have a gross loan portfolio of more than $6 billion by 2028. Grab also raised its broader 2028 targets following the transaction. The company now expects $1.7 billion in Group Adjusted EBITDA by 2028, up from its previous target, while forecasting revenue growth of more than 30% annually from 2025 through 2028.
Apart from the aforesaid deal, Grab has also agreed with AIGL and the other sellers to purchase the remaining 40% equity interest in Atome Financial, almost two years after the completion of this aforesaid deal (Phase 2).
Grab is seeing healthy momentum in On-Demand Gross Merchandise Value, continued fintech expansion and higher user activity across its ecosystem.
GRAB vs. UBER: Price Performance, Earnings Surprise History & Valuation Check
Both GRAB and UBER’s shares have declined over the past six months. However, the fall in GRAB’s shares is much steeper.
6-Month Price Comparison
UBER has outpaced the Zacks Consensus Estimate for earnings in three of the past four quarters (missing the mark once), whereas GRAB has surpassed the consensus mark only once, missing on the other three occasions.
UBER’s Earnings Surprise History
GRAB’s Earnings Surprise History
UBER trades at 2.24X forward 12-month sales, slightly below the 2.36X multiple for GRAB.
Conclusion
Uber’s valuation relative to Grab is clearly appealing. Its ongoing diversification, partnership-driven AV strategy and shareholder-friendly buybacks point to a company in strong financial shape. Uber’s much larger scale (market cap of $144 billion) also gives it greater resilience during uncertain macro periods. The company’s better price performance also works in its favor.
Grab, in contrast, operates within a narrower geographic base, leaving it more exposed to regional downturns. Economic uncertainty across key Southeast Asian markets — caused by inflation, shifting consumer trends and supply-chain challenges — has weighed on performance. The company also faces stiff competition in deliveries.
Based on our analysis, Uber clearly emerges as the winner in this faceoff. Thus, we can safely conclude that UBER has better prospects at present and is a better investment, despite both stocks carrying a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.