A Long-Term Investment Thesis: Why Uber Deserves a Place in Your Portfolio

The Financial Performance That Speaks Volumes

Uber’s operational metrics paint a compelling picture for patient investors. Throughout the first three quarters of 2025, the company generated nearly $38 billion in revenue, reflecting an 18% year-over-year increase. More impressively, expense growth lagged behind revenue expansion, signaling improving operational efficiency. Combined with a substantial $4.3 billion income tax benefit, this resulted in net income reaching $9.8 billion—more than triple the $3.0 billion recorded in the same period a year prior.

From a valuation standpoint, Uber presents an intriguing opportunity. The forward one-year P/E ratio sits at just 19—substantially below the S&P 500’s average of 31. This gap suggests the market has already embedded most of the company’s known challenges into its price, leaving room for upside surprises rather than downside shocks.

Dominance Across Multiple Revenue Streams

The global transportation and logistics landscape has been fundamentally reshaped by Uber’s dual-platform model. As the world’s preeminent ridesharing platform, Uber has penetrated markets from Tokyo to São Paulo. Meanwhile, its Uber Eats division commands more revenue globally than any competitor, despite facing stiff domestic competition in the United States.

What makes this positioning particularly powerful is the network effect. Drivers attract passengers; passengers attract drivers. The ecosystem becomes increasingly valuable as it scales. Some consumers now actively choose ridesharing over vehicle ownership in traditionally car-dependent markets like America—a trend that could accelerate dramatically.

The Autonomous Future Already in Motion

Uber’s partnerships with automotive manufacturers such as General Motors and technology leaders including Alphabet represent more than strategic goodwill. These collaborations position Uber as the logical platform for autonomous vehicle deployment. Rather than owning fleets, Uber’s existing infrastructure will seamlessly match riders with self-driving vehicles, essentially monetizing a technology transition without bearing ownership risk.

This partnership approach could unlock a substantial new revenue stream while deepening Uber’s moat within transportation ecosystems.

Growth Headwinds and Market Reality

To be fair, challenges exist. Macroeconomic pressures and regulatory efforts in certain jurisdictions to reclassify drivers as employees could constrain growth rates. Despite these headwinds, gross bookings continue climbing, and the stock has appreciated over 30% annually.

Why This Warrants a Long-Term Commitment

For investors with conviction in long-term trends, Uber represents the type of holding worth keeping dear life. The company has earned its position as a global leader across ridesharing and food delivery. Its financial trajectory—accelerating profits despite acknowledged obstacles—combined with a valuation that prices in skepticism rather than optimism, creates an asymmetric risk-reward profile favoring patient capital.

Uber won’t be a sure thing. No stock ever is. But within a diversified portfolio, this company’s dominance, financial momentum, and transformation potential suggest it deserves space for investors committed to the years ahead.