Uber Technologies (NYSE: UBER) is a powerhouse in the ride-hailing industry, boasting the world’s largest platform with 202 million monthly active users. However, the company faces a significant challenge in its reliance on 9.7 million drivers, who are its largest cost by a significant margin.
To combat this issue, Uber is actively collaborating with developers of self-driving cars to automate a substantial portion of its trips. CEO Dara Khosrowshahi believes that this shift presents a multitrillion-dollar opportunity for the company and could drive substantial growth in Uber stock over the long term.
In 2025, Uber reported $193.4 billion in gross bookings, with drivers taking home $85.4 billion, the largest portion of these bookings. After deducting other costs, such as payments to restaurants for food orders, Uber’s revenue for the year was $52 billion. However, when factoring in operating expenses, the company’s adjusted non-GAAP profit was $5.2 billion, highlighting the challenges in converting gross bookings into revenue and profit.
By investing heavily in autonomous technology, Uber aims to shrink or eliminate the $85.4 billion cost of human drivers, which would significantly boost its revenue and profit margins. The company is well-positioned to succeed in the autonomous space, given its vast user base and infrastructure. Over 20 companies developing autonomous vehicles are plugging into Uber’s network, including Alphabet’s Waymo, which completes over 450,000 paid autonomous trips weekly using Uber’s platform.
While autonomous vehicles currently account for just 0.1% of all ride-sharing trips globally, Uber plans to offer autonomous trips in 15 cities by the end of 2026, with ambitions to become the largest player in the autonomous space by 2029. Khosrowshahi foresees a multitrillion-dollar opportunity for Uber in this emerging market.
Although Tesla (NASDAQ: TSLA) poses stiff competition with its own ride-hailing network and autonomous robotaxi, Uber stands out as a compelling investment opportunity. With a price-to-sales ratio of 3.1 and a price-to-earnings ratio of 30.1 based on its 2025 earnings, Uber appears undervalued compared to its peers in the tech sector. In contrast, Tesla’s sky-high P/E ratio of 377 may deter investors, despite its potential in the autonomous ride-hailing industry.
In conclusion, investors looking to capitalize on the autonomous driving revolution may find Uber stock to be a promising choice. With its strategic focus on autonomous technology and attractive valuation, Uber is well-positioned to thrive in the evolving transportation landscape.
—
This rewritten article provides a comprehensive overview of Uber’s foray into autonomous technology, highlighting its potential for growth and investment opportunities. The content seamlessly integrates key points from the original article while presenting a unique perspective on Uber’s prospects in the autonomous driving industry.
