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The stock market has experienced significant volatility this year, largely driven by macroeconomic uncertainties and global trade tensions. President Donald Trump’s imposition of substantial tariffs on Canada, Mexico, and China has exacerbated investors’ concerns about potential economic repercussions, contributing to declines across major indices.
Amidst these broader concerns, Uber Technologies (UBER) has emerged as one of the top performers within the S&P 500 Index ($SPX), with its stock gaining approximately 24% year-to-date. Uber, known for its dominance in ride-hailing and expanding presence in food and grocery delivery, is navigating macro concerns well and outpacing the broader market. Additionally, billionaire investor Bill Ackman’s revelation of a more-than-$2 billion investment in Uber stock further propelled its share price.
Analysts remain optimistic about Uber’s prospects, maintaining a “Strong Buy” consensus rating. They see continued growth potential that could propel Uber stock even higher over the next 12 months. Against this background, let’s dive into the key factors that could drive Uber stock even higher in 2025.
Strong Demand in Mobility to Push Uber Stock Higher
Uber wrapped up 2024 on a strong note, showing impressive growth across key metrics like monthly active platform consumers (MAPCs), trips, and gross bookings. This momentum in its business will likely sustain in 205 and beyond.
The company’s mobility segment remains a major growth driver, with gross bookings seeing consistent expansion. The segment’s performance is supported by higher demand and growth in the increasing number of active drivers, which surged by 26% year-over-year in the fourth quarter.
Uber is now doubling down on demand generation through product innovation and market expansion. The company has been working to broaden its mobility use cases, making ride-hailing more accessible and tailored to different customer segments. One of its notable moves was launching Uber Business Black, a premium service that blends the luxury of high-end car services with Uber’s convenience. Meanwhile, Uber for Business continues to gain traction, with gross bookings rising roughly 50% year-over-year in Q4. This segment still has plenty of room to grow as more companies integrate Uber into their corporate travel and commuting solutions.
The Booming Delivery Business
Another area where Uber is seeing strong momentum is its delivery business. Gross bookings in this segment continue to climb, fueled by an increase in trips and expanding delivery categories. The demand for delivery remains robust, thanks to rising membership adoption and the company’s expansion of grocery and retail selection.
Notably, Q4 marked the seventh consecutive quarter of year-over-year growth acceleration in delivery MAPCs. Looking ahead, Uber aims to enhance affordability, expand its selection into new categories, and improve service in less densely populated areas. These initiatives will help sustain strong demand and drive further growth in this segment.
Uber One: A Game-Changer for Recurring Revenue
A major factor contributing to Uber’s long-term growth is its subscription service, Uber One. The program now has over 30 million members, a remarkable 60% increase year-over-year. Uber One members contribute a significant portion of the company’s mobility and delivery gross bookings and spend more on the platform than non-members. This trend underscores Uber One’s ability to generate recurring revenue and increase customer loyalty.
Advertising: A High-Margin Growth Avenue
Another promising revenue stream for Uber is its high-margin advertising business. The delivery segment alone benefited from a $461 million boost in advertising revenue in 2024. Uber continues to enhance its ad offerings and attract more advertisers, which should further strengthen its revenue stream. This diversification is key to Uber’s ability to monetize its platform beyond ride-hailing and delivery.
Autonomous Vehicles: The Future of Uber’s Platform
Uber is also well-positioned to benefit from the rise of autonomous vehicles (AVs). With approximately 171 million MAPCs, Uber’s massive customer base makes it a critical demand aggregator for AV manufacturers. By integrating AVs into its network alongside human drivers, Uber can optimize efficiency, fulfill demand spikes, and provide unmatched flexibility to partners. This hybrid model gives Uber a strong competitive edge in the evolving transportation landscape.
Wall Street’s Optimistic Outlook
Given Uber’s expanding market opportunities and strong execution, Wall Street analysts remain bullish. The consensus price target of $90.09 suggests potential 24.6% upside in the next 12 months. Meanwhile, the Street-high price target of $115 implies a possible gain of over 59%.
With a massive growth runway, multiple revenue streams, and a firm grasp on industry trends, Uber appears well-positioned for further gains in 2025.
