Uber: Assessing Its Viability as a 'Forever Stock' in 2025

In the quest for a "forever stock"-a company capable of delivering consistent value over decades-investors must evaluate not only financial performance but also strategic vision, competitive moats, and valuation discipline. Uber Technologies Inc. (UBER), the ride-hailing and delivery giant, has long been a subject of debate in this context. By 2025, however, the company's evolving business model, robust financials, and strategic bets on autonomous technology suggest it may finally be positioning itself as a durable long-term investment.

Financial Resilience and Strategic Execution

Uber's third-quarter 2025 results underscore its financial resilience. The company reported a 22% year-over-year increase in trips to 3.5 billion and a 21% rise in Gross Bookings to $49.7 billion, reflecting strong demand across its Mobility and Delivery segments. Adjusted EBITDA grew 33% to $2.3 billion, with margins expanding to 4.5% of Gross Bookings, a sign of improving operational efficiency according to the financial report. Free cash flow of $2.2 billion further reinforced its liquidity position, enabling reinvestment in growth initiatives. Analysts have responded positively, with Bank of America maintaining a "Buy" rating and RBC Capital reiterating "Outperform," citing Uber's execution quality and fundamentals.

This performance is underpinned by a diversified revenue base. While Mobility remains core, Uber Eats and Freight contribute increasingly to earnings. For instance, Uber Eats now accounts for 35% of Gross Bookings, driven by its dominance in international markets like Africa, where it holds a 62% user preference share.

Strategic Bets on the Future of Mobility

Uber's long-term viability hinges on its ability to adapt to technological shifts. The company's investments in autonomous vehicles (AVs) and partnerships with firms like Pony AI and WeRide highlight its ambition to lead the next phase of urban mobility. A key collaboration with NVIDIA aims to integrate Level 4 AVs into its global platform, leveraging NVIDIA's AI-driven hardware and software to accelerate deployment.

While AVs remain capital-intensive and unprofitable in the short term, Uber's global scale provides a critical advantage. Its 55% share of the U.S. ride-hailing market and 37.2% global share create a vast network for testing and scaling autonomous fleets according to market analysis. Moreover, the company's asset-light model-relying on third-party drivers and partners-reduces upfront costs compared to rivals like Lyft, which has a more centralized approach.

Competitive Advantages and Valuation Appeal

Uber's dominance in both ride-hailing and delivery services creates formidable barriers to entry. In the U.S., it commands 76% of the ride-hailing market, compared to Lyft's 24%. Globally, Uber Eats holds a 31% share of the food delivery market, outpacing competitors like DoorDash and Deliveroo in key regions. These network effects are amplified by proprietary technology, including AI-driven route optimization and dynamic pricing, which enhance user retention and driver efficiency according to industry analysis.

Valuation metrics further support Uber's appeal. As of Q3 2025, the company trades at a forward P/E ratio of 19.42x and a trailing P/E of 10.95x, significantly lower than Lyft's 52.7x. This discrepancy reflects market skepticism about Lyft's growth potential despite its turnaround story, while Uber's strong cash flow and expanding margins suggest a more conservative, sustainable valuation. Additionally, Uber's net margin of 22.4% and ROE of 45.7% highlight its profitability relative to peers according to financial analysis.

Risks and Cautions

Investors must remain mindful of challenges. The AV sector's high capital intensity and regulatory hurdles could delay profitability. While Uber's partnerships mitigate some risks, execution delays or technological setbacks could erode investor confidence. Additionally, competition in delivery services is intensifying, with Amazon and DoorDash expanding their footprints. However, Uber's global scale and diversified revenue streams provide a buffer against such pressures.

Conclusion

Uber's 2025 performance and strategic direction position it as a compelling candidate for a "forever stock." Its financial discipline, network effects, and forward-looking investments in AVs and AI create a durable competitive edge. While risks persist, the company's valuation appears undemanding relative to its growth prospects and market leadership. For investors seeking a long-term hold, Uber's combination of profitability, innovation, and scale offers a compelling case.