Why Uber's Strategic Position in Autonomous Driving Could Be a Game-Changer for Long-Term Investors

The Convergence of Multiple Growth Drivers

Uber operates across two substantial revenue pillars—mobility services and food delivery—which combined generate over 90% of the company’s total income. However, the most intriguing development lies not in these established segments, but in the company’s emerging autonomous driving initiatives. The platform has already begun offering self-driving services in select metropolitan areas, positioning itself as a potential infrastructure provider for autonomous vehicle operators. This dual positioning—as both a rideshare competitor and a technology platform for autonomous fleets—creates a unique value proposition that extends far beyond traditional transportation businesses.

Why a Prominent Investor Is Taking Notice

The investment community’s attention has sharpened following a significant capital commitment from a major institutional investor known for identifying undervalued growth opportunities. This particular fund manager has built a track record by acquiring substantial positions in companies like Chipotle and Alphabet during periods when valuations appeared compressed, subsequently realizing substantial gains as these businesses recovered. His current allocation of approximately 20% of his fund’s assets to a single position signals considerable conviction in the company’s direction, particularly given that the fund maintains exposure to only ten companies total.

The Financial Case for Confidence

Uber’s operational performance through the first three quarters of 2025 paints a compelling picture. The company generated approximately $38 billion in revenue during this period, representing an 18% year-over-year increase. Within this total, mobility revenue grew 18% while delivery expanded by 24%. More impressively, the company managed to limit expense growth to just 13%, demonstrating improved operational efficiency. This discipline translated into nearly $9.8 billion in net income for the nine-month period—a dramatic leap from $3.0 billion in the comparable 2024 timeframe. While a tax benefit contributed meaningfully to this improvement, underlying operational earnings still expanded substantially.

The stock price movement reflects this strengthening business momentum. Despite recent market-wide weakness, Uber shares are up approximately 40% over the past year. From a valuation perspective, the company appears notably attractive. The current P/E ratio of 11 and forward P/E of 13 suggest meaningful undervaluation, and even the forward one-year P/E of 20 indicates the market may be underappreciating the earnings power ahead.

The Autonomous Driving Revolution as a Long-Term Catalyst

Looking forward, the autonomous vehicle opportunity represents perhaps the most significant upside catalyst. As self-driving technology matures, transportation companies and robotaxi operators will need reliable platforms to manage fleet operations and customer interactions. Uber’s existing infrastructure—its network effects, real-time routing capabilities, and customer trust—positions the company to capture a substantial portion of this emerging market. The transformation of transportation through autonomous vehicles could eventually dwarf the company’s current ride-hailing business, creating multiple expansion opportunities that the market has yet to fully price in.

What This Means for Individual Investors

The question facing investors isn’t whether to blindly follow institutional capital flows, but whether Uber meets their personal investment criteria. Not all high-conviction bets by sophisticated investors translate directly into suitable holdings for individual portfolios. However, in this case, the combination of solid current-period financial performance, attractive valuation metrics, and genuine long-term optionality through autonomous driving creates a reasonable case for consideration. The company’s ability to limit cost growth while expanding revenue demonstrates operational competence, while the forward expansion into autonomous services offers a technology story that could drive outsized returns for patient shareholders willing to maintain a multi-year holding period.