Rideshare and Delivery Platforms: EBITDA Optimism and Advertising-Driven Growth

The rideshare and delivery platform sector is undergoing a pivotal transformation, marked by improving EBITDA margins and a surge in advertising revenue. As investors reassess capital allocation in a high-interest-rate environment, the sector’s strategic positioning—driven by operational leverage and digital monetization—offers compelling opportunities.

EBITDA Normalization and Operational Leverage

The sector’s EBITDA multiple has contracted to 14.3x in 2025, down from a historical average of 18x, reflecting a normalization of growth expectations and the impact of higher borrowing costs [1]. However, this contraction masks divergent performances among key players. Uber, for instance, has emerged as a standout, with U.S. rideshare sales growing 10% year-over-year in March 2024, outpacing Lyft’s 3% growth [2]. The company’s Q2 2025 results underscore its operational strength: trips and gross bookings surged 18%, while adjusted EBITDA hit record highs, supported by a $3.3 billion free cash flow in 2023 and an upgraded BB+ credit rating outlook [3].

Lyft, by contrast, continues to lag. Its struggles to close the market-share gap and achieve profitability highlight the sector’s competitive intensity. DoorDash, meanwhile, has maintained momentum, with expanding EBITDA margins and a focus on delivery efficiency [1]. These divergences suggest that capital reallocation is favoring platforms with scalable unit economics and strong network effects.

Advertising Revenue: A New Growth Engine

Advertising is reshaping the sector’s margin profile. Wells Fargo analysts estimate that DoorDash’s ad revenue will grow at a 39% CAGR, scaling from $1.3 billion in 2025 to $3.5 billion by 2028 [4]. This trend is not isolated: Grab’s advertising revenue in the Deliveries segment reached an annualized run-rate of $216 million in Q4 2024, a 60% year-over-year increase, with its contribution to gross merchandise value (GMV) rising to 1.7% from 1.4% in the prior year [5].

Uber’s advertising segment, though less emphasized, is also gaining traction. The company’s ecosystem—spanning rides, food delivery, and freight—provides a fertile ground for targeted ads, particularly as user engagement metrics improve. For investors, the sector’s ability to monetize digital touchpoints represents a critical tailwind, especially as traditional growth in ride and delivery volumes plateaus.

Capital Reallocation and Strategic Priorities

The sector’s capital reallocation strategies are increasingly focused on shareholder returns and operational efficiency. Uber’s $20 billion share repurchase authorization, announced in Q2 2025, signals confidence in its free cash flow generation and a commitment to enhancing equity value [6]. Similarly, DoorDash’s reinvestment in logistics technology and Grab’s expansion of self-serve advertising tools [7] reflect a broader trend of prioritizing margin expansion over aggressive customer acquisition.

However, challenges persist. The sector’s EBITDA multiple remains below historical averages, suggesting lingering skepticism about long-term growth sustainability. For instance, Lyft’s partnership with DoorDash to boost ad revenue lacks concrete financial metrics, leaving investors to speculate on its impact [8]. Meanwhile, Grab’s advertising growth, while robust, is still a small portion of its overall GMV, necessitating further monetization of its ecosystem.

Strategic Positioning for the Future

The sector’s future hinges on two levers: operational leverage and advertising scalability. Platforms that can balance cost discipline with innovation in digital advertising—such as Uber’s AI-driven targeting or Grab’s self-serve ad platforms—will likely outperform. Investors should also monitor interest rate trends, as the sector’s valuation multiples remain sensitive to borrowing costs.

Conclusion

Rideshare and delivery platforms are at an inflection point. While EBITDA normalization has tempered valuations, the rise of advertising as a margin driver and the sector’s operational discipline present a compelling case for selective investment. For capital allocators, the key lies in identifying companies that can sustain EBITDA growth while capturing the advertising tailwinds—a dynamic that could redefine the sector’s long-term trajectory.

Source:
[1] Rideshare & Delivery Nov ’23: Profitability and Strong [https://www.platformaeronaut.com/p/rideshare-and-delivery-nov-23-profitability]
[2] The U.S. Rideshare Industry: Uber vs. Lyft [https://secondmeasure.com/datapoints/rideshare-industry-overview/]
[3] Where to? The Story of Uber [https://quartr.com/insights/edge/where-to-the-story-of-uber]
[4] Wells Fargo lifts EBITDA for rideshare, delivery on ad momentum [https://ca.finance.yahoo.com/news/wells-fargo-lifts-ebitda-rideshare-141807453.html]
[5] Grab Reports Fourth Quarter and Full Year 2024 Results [https://investors.grab.com/news-and-events/news-details/2025/Grab-Reports-Fourth-Quarter-and-Full-Year-2024-Results-2025-v9rBPVmWY5/default.aspx]
[6] Uber Technologies AI Stock Analysis [https://www.tipranks.com/stocks/uber/stock-analysis]
[7] Self-serve boosts Grab's ad revenue [https://www.warc.com/content/feed/self-serve-boosts-grabs-ad-revenue/10082]
[8] 3 Reasons to Buy Lyft Stock Like There's No Tomorrow [https://finance.yahoo.com/news/3-reasons-buy-lyft-stock-134500566.html]