Is Uber Stock a purchase after the Robotaxi Push in Dubai with Weride? – April 7, 2025

In a significant development in the autonomous vehicle room ,, Uber technology ((About quick quoteAbove – – Free report) recently worked with China Weride ((WRD fast quoteWRD – – Free report) for the introduction of self -driving cars in Dubai. The companies announced a partnership with the Dubai’s Road and Transport Authority. This cooperation aims to integrate Weride’s self -driving technology into the Uber platform.

The partnership, in which data views, security protocols and regulatory framework are examined in order to support a smooth transition to autonomous mobility in Dubai, is Dubai’s goal of making a quarter of all city trips autonomous. The partnership in Dubai represents the second city in the region in which Weride and Uberids are approved to the public. In December 2024, Uber and Weride started a Robotaxi service in Abu Dhabi.

Uber aims to win a stronghold on the promising robotaxi market through strategic partnerships. The above association is a step on this front. By assuming this approach, the massive F&E costs, which are connected independently with the development of autonomous systems, has avoided. Ubers rival on the ride, Lyft ((Lyft Quick quoteLyft – – Free Report) also aims to be an important player on the lucrative and aspiring autonomous vehicle market and to emphasize the immense competition in the room. The global robotaxi market is expected to reach $ 45.7 billion from 2025 to 2034 to 2030.

Other factors that work in favor of Uber

Impressive price -performance: Uber has recorded the recent tariff-induced stock market volatility well with a win of 7.2%, while the S&P 500 index, the Zacks Internet Services industry and the Rival Lyft 2025 have so far been in second place.

YTD price comparison

Image source: Zacks Investment Research

Also last year Uber shares developed much better than Lyft.

Favorable earnings estimate revision: The Zacks Consensus estimate for the first quarter and the second quarter of 2025 as well as the year 2025 and 2026 have recorded upwards in the last 60 days. The positive revision trend reflects confidence in Uber’s ability to continue to provide strong financial services.

Image source: Zacks Investment Research

Impressive income story: Uber has exceeded the Zacks Consensus estimate in three of the last four quarters and once missed the brand, with the average beat 133.5%.

Uber’s buyback strategy signals trust: In 2024, Uber achieved a record of 6.9 billion US dollars of Free Cashflow with an adjusted EBITDA of $ 6.5 billion. The announcement of Uber at the beginning of this year at the start of an accelerated program of $ 1.5 billion not only illuminates its shareholder-friendly strategy, but also the trust in its ongoing business strategy. The plan for 1.5 billion US dollars is part of the company’s buyback program announced last year.

Praise for expansion efforts: Although Uber’s primary business with employees with the edition of food and freight is diversified over time. The diversification is essential for large companies to reduce risks and Uber has emerged in this area. The company has involved numerous acquisitions, geographical and product diversifies and innovations. The efforts of Uber to expand into international markets are commendable and offer the advantages of geographical diversification. Smart investments make it possible to expand services and consolidate its comprehensive offers.

Key segments that cut off well: Ubers ride and delivery platforms are becoming increasingly popular. This leads to a strong demand that, together with the latest growth initiatives and persistent cost discipline, drives the results of the company. In the fourth quarter of 2024, the gross beams from a constant currency base increased by 21% compared to the previous year to 44.2 billion US dollars, whereby trips rose by 18% to $ 3.1 billion. Gross bookings are likely to be strong in the future and keep them in good condition.

We assume that rough bookings from the mobility segment will grow by 15.6% compared to the previous year. We assume that rough bookings from the delivery segment will grow by 15.1% compared to the previous year. The total trips are expected to increase by 19.4% in the March-End quarter to our model compared to the previous year.

Uber is a solid choice

Based on the tailwind mentioned above, investors should consider parking their money in Uber now. The company currently runs a Zacks rank # 2 (Buy).

The average price target of Wall Street for $ 90.02 for Uber shares indicates an upward trend of more than 39% compared to the current level.

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Here you will find the full list of today’s Zacks #1 rank (Strong Buy).