Bank of America maintains a positive outlook on Uber, highlighting that its autonomous driving business pipeline could unlock meaningful upside. The firm also noted that Uber’s mobility and delivery segments continue to demonstrate solid booking momentum. It expects growth in Uber’s U.S. autonomous driving operations in the second half of the year to further improve market sentiment.

Uber is also expected to generate additional merchant fee income, which could support EBITDA growth or be reinvested into business expansion. The company is currently valued at around 11x expected 2027 EBITDA and approximately 12x free cash flow, suggesting room for multiple expansion as its autonomous vehicle strategy progresses.

At present, Uber shares are trading around $74, with a market capitalization of approximately $150 billion and an EV/EBITDA multiple of 22.92. However, risks include intensifying competition in the autonomous driving space and rising investment costs associated with scaling the technology.

In recent developments, Uber announced a major expansion into the travel sector through a partnership with Expedia Group. The collaboration will allow users to book hotels directly within the Uber app, marking one of its largest moves into the travel industry. Initially, Expedia’s hotel inventory will be integrated in the U.S., with vacation rentals from Vrbo expected to be added in 2026.

Additionally, Uber has agreed to acquire Hong Kong-based taxi service FlyTaxi as part of its regional expansion strategy, although financial terms were not disclosed.

Uber has also formed a strategic fleet partnership with Hertz Global Holdings through Oro Mobility. This collaboration focuses on fleet management for both autonomous robotaxis and driver-operated vehicles in the U.S. The initiative includes the use of Lucid vehicles equipped with Nuro autonomous driving technology, with plans to launch in the San Francisco Bay Area later this year.

Market Interpretation

BMO Capital Markets has also reiterated its Outperform rating on Uber following its annual “GO-GET” product showcase. The firm expressed increased confidence after Uber introduced new services aimed at enhancing the utility of its app.

Overall, these developments highlight Uber’s ongoing efforts to diversify its product offerings and expand market share, while positioning itself for long-term growth driven by autonomous mobility.